To make this decision, you will want to consider the points discussed in the section above on whether Binance Coin is a good investment, but here are a few more things to think about.
What will I need to buy BNB?
Before you can buy BNB, you will need to create and verify an account on a crypto platform, so you will need to have certain documents ready in order to complete the KYC process. Most platforms require users to upload an image of their photo ID—usually their UK driving licence or passport.
You may also be asked for some form of proof of address, which could be a utility bill or bank statement with your address on it. Make sure you have these documents ready when you start the KYC process, as well as any other information required, such as your National Insurance number.
Binance Coin Fees & Regulations
There are network fees for making transactions on any of the blockchains that BNB runs on. However, as many platforms charge a fixed fee for trades, you don’t need to worry about network fees when making purchases and sales. You will just need to pay a trading fee or commission, which is 1% plus spread on eToro, and up to 0.1% on Binance.
There are other fees that your platform will charge. For example, you will likely have to pay fees on deposits and/or withdrawals, which may differ depending on the payment method used. Account management, inactivity, and overnight fees may also be charged by some platforms.
All cryptocurrencies are unregulated in the UK, so Binance Coin investors are unlikely to have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme. This is why it is important to keep your BNB as safe as possible and only buy and trade it on regulated platforms.
When to Buy Binance Coin?
This is a personal choice that depends on your investment goals and strategy. The exact entry point isn’t that important for long-term investors as they believe the price of BNB will trend upwards overall in the long term.
Shorter-term investors may choose to buy and sell based on certain events, such as project developments or news about regulation or the economy. If you employ a particular trading strategy, you will likely generate buy and sell signals from technical indicators, like the relative strength index or Fibonacci retracement. You could even buy and sell at the same time as a professional trader by using eToro’s CopyTrader feature.
Many investors aim to buy BNB during a price dip, which requires some understanding of BNB price and how to predict it, which will be discussed below.
Binance Coin Price and Prediction
The price of BNB is affected by many diverse factors, from project-specific events to the behaviour of the wider crypto market to global economic conditions. For example, a BNB token burn or a new Binance partnership could be good for BNB price, while regulatory hurdles could be bad.
You can check the Binance Blog to read about Binance’s latest developments. To find out what effect this and other factors might have on the future value of BNB, take a look at our Binance Coin price prediction page.
Buying Binance Coin Safely in the UK
A regulated platform with a strong reputation is the safest way to buy Binance Coin, as they usually have the most stringent security measures, as well as better features and support. In the UK, the safest platforms are those licensed by the FCA, like eToro. Security features to look for include offline storage, insurance, address whitelisting, and two-factor authentication.
You should act responsibly when you invest by never investing more than you can afford to lose. You should also keep your investment somewhere safe, like a hardware wallet. Storing your seed phrase safely is important in case you ever need to recover access to your wallet.
Binance Coin investors are a target for hackers and scammers, so always be vigilant. You should check the provenance of emails purporting to be from your platform or wallet provider, and never share your password or private key with anyone.
Buying Binance Coin Anonymously in UK
Platforms that are regulated in the UK require their users to complete the Know Your Customer process and verify their identity before making a purchase in order to comply with Anti-Money Laundering laws.
This means that to buy crypto anonymously, you would need to do so on an unregulated platform, such as a decentralised exchange (DEX). All you need to use a DEX is a wallet such as MetaMask, which you can create without providing any personal information. DEXs only enable you to swap between different cryptocurrencies, though, so you would first need to acquire another cryptocurrency to swap for BNB.
However, this is a more complicated and risky way to buy BNB as unregulated platforms may attract scammers. It is, therefore, safer and easier to use a regulated platform, as KYC only usually takes a few minutes, and it is perfectly legal to buy BNB in the UK.
Best ways to buy - a comparison between centralised exchanges & decentralised exchanges
All the platforms in this guide are centralised, meaning they are operated by a company. Many platforms have an order book, where buy orders are matched with sell orders to facilitate trades. The platform will charge you a fee for this service.
Beginners appreciate centralised exchanges (CEXs) as they provide a better user experience, are usually easy to navigate, and often provide customer support and educational resources. They’re popular with experienced traders as well, as many platforms provide more advanced features, such as a variety of order types and tools for technical analysis.
Conversely, there is no company or authority in charge of a decentralised exchange (DEX), as it operates through smart contracts on the blockchain. Instead of facilitating trades through an intermediary, DEXs tend to use liquidity pools. These are pools of crypto assets that trades are made against. People are incentivised to provide assets for these pools as they will receive exchange fees in return.
DEXs are popular with people who want to retain full custody of their assets and trade anonymously. However, the network fees can be expensive on DEXs, and they don’t provide many features. What’s more, you will need to buy another cryptocurrency first to swap for BNB, as DEXs don’t tend to have fiat on/off ramps.