Invest In Binance Coin – How To Invest In Binance Coin For Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Binance Coin (BNB) is the native cryptocurrency issued and backed by the Binance exchange. The token now operates on the Binance Smart Chain and is a top-5 digital asset in terms of market capitalization.
In this guide, we show you how to invest in Binance Coin from the comfort of your home with a regulated and low-cost brokerage. We also cover the ins and outs of whether BNB represents a viable investment for your crypto portfolio.
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#1 Broker to Invest in Binance Coin – eToro
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How To Invest in Binance Coin – Choose a Broker
If you want to invest in Binance Coin in the safest and most cost-effective way possible – you will need to choose a suitable broker. Below you will find a selection of the best brokers that currently list BNB tokens.
- eToro – Overall Place to Invest in Binance Coin (US Friendly)
- Binance – Best Place to Invest in Binance Coin for Low Commissions
- Capital.com – Trade Binance Coin via Leveraged CFDs
We review the above Binance Coin investment platforms further down in this guide.
How to Invest in Binance Coin – A Quick Guide For 2021
If you are looking for a quickfire walkthrough of how to invest in Binance Coin – check out the step-by-step overview below. Here, we show you how to invest in BNB with eToro – a regulated brokerage that charges low fees and supports debit/credit card payments.
- Step 1: Open an Account with eToro – You will first need to open an account with eToro – which shouldn’t take you more than a couple of minutes. You will be asked to provide some personal information, contact details, and a username/password.
- Step 2: Upload Your ID – eToro supports fiat currency payments, so they must ask you to upload a copy of your ID.
- Step 3: Deposit Funds – You can deposit funds into your eToro account with a debit/credit card, Paypal, Neteller, Skrill, or a bank wire.
- Step 4: Invest in Binance Coin – Enter ‘BNB’ into the search bar at the top of the page, click on the ‘Trade’ button, and enter your stake ($25 minimum) into the ‘Amount’ bar.
Finally, click on the ‘Open Trade’ button to place your order. And that’s it – you’ve just learned how to buy Binance Coin in under five minutes!
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy Binance Coin – Full Broker Reviews
Although Binance Coin is a top-5 cryptocurrency with a multi-billion dollar market valuation – many brokers do not list the digital token. The reason for this is that BNB is listed on the Binance Smart Chain, which operates independently from the likes of Bitcoin, Ethereum, and other leading networks.
Nevertheless, our research team has identified a small selection of pre-vetted brokerage sites that allow you to invest in Binance Coin in a safe and low-cost manner. You can read our full reviews of these platforms below.
1. eToro – Overall Best Place to Invest in Binance Coin
eToro is an online trading platform that offers a vast range of asset classes. This covers everything from stocks and indices to forex and commodities. Furthermore, eToro also supports dozens of cryptocurrency markets – meaning that you can invest in Binance Coin with ease. The reason that eToro makes our number one pick in terms of BNB brokers is that the platform is heavily regulated, simple to use, and offers super low fees.
Starting with regulation, eToro is licensed in multiple jurisdictions. For instance, the broker is authorized and regulated by the SEC, FCA, ASIC, and CySEC. This ensures that you can invest in Binance Coin from the comfort of your home in a safe environment. When it comes to user-friendliness, the eToro platform is very easy to navigate. In fact, you can open an account in a matter of minutes and then deposit funds with a debit/credit card, bank transfer, or an e-wallet like Paypal.
Then, it’s just a case of searching for BNB, entering the number of tokens you wish to purchase, and confirming the investment. The minimum stake per trade at eToro is just $25, so you can invest in Binance Coin in small increments. When it comes to fees, eToro operates on a spread-only basis – which starts at 0.75%. This is very competitive, especially when you consider that brokers like Coinbase charge commissions of 1.49% in addition to the spread.
If you’re looking to invest in Binance Coin in addition to other cryptocurrencies, eToro hosts major tokens like Ethereum, Bitcoin, Cardano, and Litecoin. You can also buy DeFi coins such as Decentraland, Algorand, and AAVE. Another great way to diversify your cryptocurrency investments at eToro is to use the CryptoPortfolio tool. This allows you to invest in a diversified basket of digital currencies through a single trade. The portfolio is managed by eToro and thus – regularly rebalanced on your behalf.
You then have the Copy Trading tool, which is used by millions of eToro users. This tool allows you to choose a successful trader and elect to copy their investments like-for-like. In terms of deposits, the minimum stands at $50 for US clients and $200 for most other nations. Funding your account in US dollars will attract no deposit fee, while other currencies will be charged at a very reasonable 0.5%. All in all, taking into account the broker’s strong regulatory framework and low fee structure – eToro is a great option when investing in Binance Coin.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, e-wallets, and local bank transfers
- Registered with FINRA/SEC and regulated by the FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
2. Binance – Best Place to Invest in Binance Coin for Low Commissions
It goes without saying that you can purchase BNB tokens on the main Binance website. This can be achieved in several ways and fees will depend on your location. For example, if you are a US client, you can invest in Binance Coin with a debit or credit card – and pay just 0.5% in fees. On the other hand, if you are located in the UK, this fee increases to 1.8%. Some regions will pay as much as 4% on debit/credit card payments, so do check this before proceeding.
Nevertheless, Binance also offers an exchange that is home to billions of dollars worth of trading activity each and every day. When buying, selling, and trading BNB tokens on the main exchange, you will only pay a commission of 0.10%. BNB can be traded against major currencies such as GBP and EUR, as well as alternative digital tokens like Bitcoin, Ethereum, and USDT. If you hold BNB tokens in your account and trade cryptocurrencies at Binance, your commissions will be reduced by 25%.
Once you have purchased Binance Coin, you can keep the tokens in your exchange account until you are ready to sell. Security measures implemented by the exchange include two-factor authentication and IP address whitelisting. Binance also allows you to withdraw your BNB tokens to a private wallet – which can be done as soon as the investment process is complete. Another major benefit of using Binance to invest in BNB is that you will have access to hundreds of other crypto assets. This will allow you to create a diverse portfolio of tokens.
Pros
- Facilitates billions of dollars in daily trading volume
- Supports hundreds of digital asset pairs
- Near-instant deposits via debit/credit card
- Trading commission starts at just 0.1% per slide
- Offers crypto savings accounts
- Ideal for both beginners and experienced traders alike
Cons
- Not all supported cryptocurrencies can be purchased with a debit/credit card
- No e-wallet deposits or withdrawals
at eToro, #1 Broker in the Crypto Space
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider
3. Capital.com – Trade Binance Coin via Leveraged CFDs
Additionally, when trading BNB tokens at Capital.com – you can apply leverage to your position. The specific limit available to you will depend on your location. Nevertheless, leverage allows you to trade Binance Coin with more than you have in your Capital.com account. Another benefit of using Capital.com is that the broker offers long and short orders on all supported financial markets. This means that you can attempt to profit from both rising and falling BNB prices.
In total, Capital.com offers over 200+ cryptocurrency markets – which is great for diversification purposes. When it comes to fees, this is where Capital.com really stands out. This is because you can trade Binance Coin without paying a single cent in commission. Plus, we found that the spreads offered by Capital.com are typically very tight. In terms of getting started, you only need to meet a minimum deposit of $20 when opting for a debit/credit card or e-wallet, while this increases to $250 when choosing a bank wire.
Pros
- Top-rated spread betting and CFD broker
- Regulated by the FCA
- Minimum deposit just $20 (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spread and no deposit/withdrawal fees
- Thousands of financial markets supported
- Great for beginners
Cons
- Advanced traders might find the platform too basic
- Minimum deposit of $250 on bank transfers
- Not available in the US
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
How to Invest in Binance Coin – Detailed & Explained in Full
Once you have chosen a BNB broker that you like the look of – it’s then time to go through the end-to-end investment process. If this is your first time investing in a digital asset like Binance Coin – the step-by-step walkthrough below will take you through the process with eToro. As noted earlier, eToro allows you to invest in Binance Coin from just $25 and on a spread-only basis.
Step 1: Open a Binance Coin Investment Account
Like all cryptocurrency brokers that are regulated by the likes of the SEC and FCA, eToro requires you to go through an account opening process before you can make any investments. This should only take you a few minutes, as it’s just a case of entering some personal information.
You will also need to create your login credentials and verify your mobile number. Finally, eToro will ask you a few questions about your historical trading experience – so it knows which investment products to offer you.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Upload ID
Now that you have an eToro account, you will need to get yourself verified. Once again, the process at eToro is streamlined and shouldn’t take you more than a couple of minutes.
All you need to do is upload the following two documents:
- Government-issued ID – such as a passport or driver’s license
- Proof of residency – such as a bank statement or utility bill
As long as your documents are clear and valid, eToro will verify them instantly.
Step 3: Deposit Funds
Now that you’re eToro account is verified, you can use the platform without facing any restrictions. As such, it’s now time to make a deposit so that you can proceed to invest in Binance Coin.
eToro supports the following payment methods:
- Debit Cards
- Credit Cards
- Paypal
- Skrill
- Neteller
- Bank Wire
- Online Banking
- ACH (US)
The minimum deposit is $50 for US clients and $200 for most other regions. If you are funding your account in a currency other than US dollars, eToro will charge you an FX fee of 0.5%. Otherwise, your deposit will be processed for free.
Step 4: Search for BNB
The next step is to enter ‘BNB’ into the search bar – which you will find at the top of the page.
Step 5: Invest in BNB
You should now see a ‘Buy Order’ box appear on your screen. This is where you need to tell eToro how much money you wish to invest in Binance Coin. You don’t need to purchase a full BNB token – as eToro simply requires a minimum investment of $25 per trade.
For instance, in the example above, we are looking to invest $100 into Binance Coin. At current market prices, this will get us 0.23% of one BNB.
To confirm your Binance Coin investment, simply click on the ‘Open Trade’ button.
How to Sell Binance Coin
If you have already invested in BNB and now want to learn how to sell Binance Coin, the specific steps required will ultimately depend on where the tokens are currently being stored.
For example:
- If you, after buying BNB, you kept the tokens in your chosen brokerage account, you can usually cash out within a few seconds. At eToro, for instance, you simply need to head over to your portfolio and click on the “Sell’ button located next to BNB.
- If your tokens are being stored in a private wallet, you will need to transfer the BNB into an exchange like Binance. Then, you can swap your BNB for fiat money and withdraw the funds to your bank account.
As per the above, investing in Binance Coin with a regulated broker like eToro is always the best option. Not only is this because you can safely store your tokens in your eToro portfolio, but when it comes to cashing out, you can do this without needing to transfer BNB from an external wallet.
Ways to Invest in Binance Coin
You might be surprised to learn that many of the largest cryptocurrency platforms in this space do not actually list Binance Coin. As we briefly mentioned earlier, this is because BNB operates on the Binance Smart Chain, which isn’t something that all platforms wish to engage with.
Nevertheless, when thinking about the best ways to invest in Binance Coin – your options are typically a choice between a cryptocurrency broker or exchange.
Binance Coin Broker
We would argue that the overarching best way to invest in Binance Coin is via a regulated online broker. This will ensure that you are investing your capital through a trusted and credible source that is likely licensed by a reputable financial body.
- For example, if you choose to invest in Binance Coin at eToro – you will be using a brokerage firm that is regulated in the US, UK, Australia, and Europe.
- Furthermore, when you elect to open an account with a cryptocurrency broker and subsequently upload a copy of your government-issued ID – you will then have access to fiat currency facilities.
In other words, you will be able to invest in Binance Coin with a convenient payment method – such as a debit/credit card or e-wallet.
Binance Coin Exchange
There are a lot more cryptocurrency exchanges hosting BNB tokens in comparison to brokers. This is because exchanges are more experienced in engaging with alternative networks like the Binance Smart Chain. When you use an exchange to invest in Binance Coin, you might come across super-low fees and hundreds of alternative markets.
However, the main thing you need to look out for is whether or not the exchange is regulated. If it isn’t, then not only will you be unable to deposit funds with fiat currency but your digital assets are at serious risk. Instead, it’s best to place it safe by only investing in Binance Coin through a respected brokerage that is appropriately regulated.
Should I Invest in Binance Coin?
Although Binance Coin has generated some superb financial returns in recent years – like all investments, you need to tread with caution. After all, there are more than 11,000 digital tokens n the cryptocurrency industry and ultimately – not all of them will succeed.
To ensure you invest in Binance Coin in an informed manner – below we discuss some of the reasons why you might decide to buy BNB.
Price Action Since 2017
Binance first issued its BNB token in late 2017 – where it was initially available to purchase at just over $0.10. Since then, the crypto asset has continued to increase in value year on year. In fact, Binance Coin hit an all-time high value earlier in 2021 – where BNB breached $690 per token.
This means that in comparison to its initial price of $0.10 in 2017 – Binance has since generated returns of 689,899%. In simple terms, this means that had you originally invested just $500 into Binance Coin when it was first launched – your money would have since grown to almost $3.5 million.
Binance Smart Chain and DeFi
The original purpose of the BNB token was to offer Binance traders discounted fees and commissions. This is still the case, with a discount of 25% offered to BNB holders when buying and selling cryptocurrencies on the main Binance exchange.
- However, BNB has since expanded its use case to ensure that Binance Coin continues to attract real-world value.
- At the forefront of this is the Binance Smart Chain – which allows anyone to create a digital token that can then be listed on a decentralized exchange like Pancakeswap.
This is crucial, as, in the vast majority of cases, tokens hosted on the Binance Smart Chain need to be purchased with BNB tokens.
Not Overly Reliant on Bitcoin
It goes without saying that virtually all cryptocurrencies are reliant on the performance of the world’s de-facto digital asset – Bitcoin. That is to say, when Bitcoin performs well – this usually results in other tokens increasing in value – and vice versa.
However, history suggests that this isn’t the case for Binance Coin. The reason for this is that the main Binance exchange will make money irrespective of whether the wider markets are up or down.
After all, the exchange collects commissions regardless of whether the majority of traders are buying or selling.
Token Burning
Another benefit of investing in BNB is that Binance regularly conducts ‘burning’ events. In a nutshell, this means that the Binance team will remove a certain number of BNB tokens from the circulating supply.
With each burning event, this means that there are fewer tokens in the market. In theory, this has the effect of increasing the intrinsic value of Binance Coin from a supply and demand perspective. This is very similar to when blue-chip companies like Apple use their excess capital to buy their own shares.
What are the Risks of Investing in Binance Coin?
It is important that you consider the risks of investing in Binance Coin before you proceed with a purchase. We have highlighted the most notable risks below:
- Regulatory Issues: In a number of jurisdictions, Binance has come under close scrutiny from national regulators. Which has since resulted in Binance being unable to facilitate fiat currency deposits and/or withdrawals in certain nations. For example, UK residents can no longer withdraw GBP to their bank accounts. Although these regulatory concerns are specifically linked with the Binance exchange, this still has reputational risks linked to BNB.
- Volatility: Binance – like all cryptocurrencies, operates in a speculative marketplace. When times are good, you might see the value of your Binance Coin investment increase at a parabolic rate. However, equally, it can also be the case that your Binance Coin investment drops in value by a considerate amount in a very short period of time.
To help counter the above risks, you might consider keeping your BNB investments conservative. This can be achieved when using a broker like eToro – which allows you to invest in Binance Coin from just $25 per stake.
Additionally, it’s worth considering alternative asset classes to help diversify your BNB investment. Perhaps consider more traditional investments like stocks or bonds to help reduce your exposure.
How Much Does it Cost to Invest in Binance Coin?
Regardless is which broker or exchange you decide to use when investing in Binance Coin, certain fees will apply. This will be determined by the provider itself – which is why it’s always a good idea to shop around when selecting a BNB broker.
For instance:
- If you invest in BNB at Binance, you might be required to pay up to 4% when using your debit or credit card to pay for the purchase. As noted earlier, this will depend on where you reside.
- On the other hand, if you use eToro, you will only pay 0.5% when using a debit or credit card. In fact, if you’re a US client, you won’t pay any deposit fees at all.
It is also important to understand how much you are paying via the spread – which is the difference between the buy and sell price of Binance Coin – as per your chosen broker. At eToro, this starts at just 0.5% when investing in digital currencies.
How to Invest in Binance Coin – Conclusion
Binance Coin is now one of the best-performing and most valuable cryptocurrencies in this industry. If you want to invest in Binance Coin in a simple, safe, and cost-effective way – consider eToro.
In doing so, you will be using a reputable brokerage with more than 20 million clients and benefit from its strong regulatory framework – which includes licenses from the SEC and FCA. Plus, you can use your debit/credit card to instantly invest in Binance Coin and the minimum trade value is just $25!
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FAQs
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