Where, why and how to buy Binance Coin (BNB).
Binance Coin (BNB) is the native token of the Binance Exchange. It was used to fund the creation of the exchange itself through an ICO and offers users a potentially useful range of features.
- Offers discounts when used to pay Binance fees
- Can be traded on Binance for other coins
- Will eventually become a native coin of the decentralised Binance exchange
How to buy Binance Coin in Australia
- Buy BTC or another crypto available in a BNB pairing.
- Register for an account with Binance.
- Enable 2-factor authentication.
- Click on “Funds” and select “Deposits”.
- Select BTC from the list of currencies.
- Copy the wallet address or scan the QR code.
- Transfer BTC into your Binance account.
- Click “Exchange” and select “Basic”.
- Search for “BNB/BTC”.
- Select a Limit, Market or Stop-Limit Order.
- Enter the amount of BNB you want to buy.
- Review transaction details.
- Click “Buy BNB”.
Where to buy Binance Coin (BNB)
You can buy BNB on Binance using a wide range of other cryptocurrencies.
About Binance Coin (BNB)There’s a total cap of 200 million BNB, but it’s a deflationary currency and will eventually shrink down to a cap of 100 million over the course of five years.
The 200 million was distributed 50/50 between the company and the public ICO.
This deflation is carried out through Binance’s purchase of 20% of the remaining public supply each quarter. The bought-back portion of coins is then burned.
What is BNB used for?
The main purpose of BNB is to give you a discount on fees incurred when that fee is paid with BNB. This might be withdrawal fees, trade fees or anything else.
The discount decreases year on year in line with the 20% bought back each year.
- Year 1 - 50% fee discount
- Year 2 - 25% fee discount
- Year 3 - 12.5% fee discount
- Year 4 - 6.75% fee discount
- Year 5 - 0% fee discount
BNB will gradually become less useful over time, most likely to discourage hoarding of BNB by users ahead of the buy-back.
In the future, Binance aims to build a decentralised exchange, and BNB will be used as one of the key base assets on the site as well as the gas that’s spent while executing contracts of the decentralised BNB exchange.
Things to consider before buying BNB
If you’re a frequent Binance user and want to duck large fees – especially if you plan on making very large trades or withdrawals – you may decide it's worth stocking up even at high prices, but remember that the discounts will decrease over time.