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How to Invest In Binance Coin In 2024

By Basil Kimathi - Updated 20 April 2023
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Binance Coin (BNB) is the native token of Binance, the largest cryptocurrency exchange in the world. It serves as a utility token on the trading platform and is used to pay for fees and to trade fringe pairs. The Binance exchange is less than four years old and within this period, as its fortunes have grown, so have those of its native token. 

Today, BNB comfortably sits in the top ten coins on charts with a market cap of over $40 billion. This piece will go over ways and strategies you can use to invest in the token today to ensure you don’t miss out on potential gains in the future.

4 Ways to Invest in Binance Coin

This section covers four ways you can invest in Binance Coin (BNB) with ease. Each strategy differs, and it’s up to you to determine which serves your needs best. 

1. Buy Binance Coin Through an Exchange 

Before joining an exchange, you need to get your hands on a cryptocurrency wallet. A wallet will help store your coins safely away from bad actors. 

Two types of wallets exist today: software wallets and hardware wallets. Software wallets come in the form of websites and desktop/mobile applications. They are easily accessible and ideal for traders or people who conduct regular BNB transactions. However, they are less secure than hardware wallets since they are connected to the internet most of the time. Examples of popular software wallets include Trust Wallet, MetaMask, and many others.

On the other hand, hardware wallets are USB flash drive-like devices used to store your BNB private keys offline. They are very safe and ideal for long-term investors and people holding large amounts of a given cryptocurrency. Examples of popular hardware wallets include Ledger, Trezor, KeepKey, Corazon, and many more. 

After acquiring a wallet, join a reputable exchange to register an account. Then complete the KYC process by uploading a photo of your ID/passport, proof of address, and a selfie. Then proceed to fund the account and buy BNB tokens.

2. Buy Fractions of Binance Coin Through an Exchange

Our second method for investing in BNB is by purchasing fractions of BNB using a cryptocurrency exchange. This is ideal for retail investors who may find the trading price a bit high. Currently, the price of Binance Coin is about $600. Not everyone interested in the asset can afford a whole coin. Therefore, it helps to know that it’s possible to buy small amounts of the coin. One BNB is divisible by 8 decimal places. The smallest unit is known as a Jager, and 100 million Jagers make 1 BNB. This means it’s possible to buy BNB worth a few cents or a dollar. But since there are network fees involved, the purchase should be able to cover them, so some platforms will require the purchase of at least $10 worth of BNB. With the right investment strategy, you can slowly accumulate your BNB stash over time. 

3. Trade Binance Coin Through a Broker

Crypto brokers offer investors or traders an easy way to profit from digital assets such as BNB. The incredible thing is you don’t have to hold and interact with the actual asset – the broker holds it for you. Also, you can trade with leverage which boosts your initial capital and increases your exposure within a given market. This allows the trader to profit often by speculating on small  BNB price movements. High volatility within the crypto market means that you can make a lot of profit using a broker to trade BNB

4. Invest In a Binance Coin ETF

The final strategy involves investing in an ETF or exchange-traded fund. These financial instruments help track indices, stocks, and other assets. They can be purchased and sold on a stock exchange, meaning they are regulated, which adds a layer of security. An ETF can be made up of several assets, which allows risk to be spread out – even if a few of the assets don’t perform as well as anticipated, losses resulting from them can be offset by the positive performance of the other assets held within the ETF. 

A BNB ETF will make sense to the investor interested in the asset but keen on managing risk associated with the coin. You can participate in one by visiting a stock exchange that offers one or a brokerage firm. Here you have the option of going for an ETF composed of only digital assets if you don’t feel like spreading your risk to other asset classes.

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What to Consider Before Investing in Binance Coin

The sections above have covered four ways to invest in BNB and five strategies you may want to apply. The following section will cover things you should pay attention to before starting your investment journey to ensure you have it is a smooth experience.  

Fees

Fees exist with most platforms and service providers. That is how they make their money. They may seem minute taken separately, but they can accumulate to large figures over time. These include network fees (the kind you incur when you buy, sell, or send the token). Depending on the trading platform you are using, you may incur additional fees. Brokers will charge commission on trades. If you pay for BNB with a credit card, this can result in fees too.

It’s good to take some time to understand the kind of fees you are likely to experience on various platforms and using different payment modes. That way, you can opt for those with the lowest cost without compromising the quality of service received. 

Risks

Like any other asset class, BNB carries its own risks. The crypto market is relatively young, and regulators are yet to grasp what the tech is all about. Inadequate regulations mean the sector is a hotspot for bad actors looking to take advantage of unsuspecting investors. It would help if you did your due diligence before investing in any project to protect yourself. Additionally, following our advice on using reputable platforms, securing your accounts with strong passwords and 2FA, plus investing in hardware wallets, should adequately protect your investment. Risk management strategies like shorting and hedging can also help you to limit potential losses.

Payment Methods

Various platforms offer different ways you can purchase BNB. Some may not support your local currency or allow you to use a mode your feel most comfortable with. That is why you need to check out the payment methods supported, as this will help you make informed decisions. A top investment platform should support some of the most popular payment modes such as credit/debit cards, wire transfers, third-party payment modes, and other cryptocurrencies. 

Credit cards offer the greatest level of protection, but often have higher fees attached. Bank transfers are usually the most cost-effective way to fund your purchase.

Why Invest in Binance Coin?

An ROI of 204,000% in less than four years is no mean feat. Outside of other digital assets, it’s hard to see any other asset class that can even try to match such returns. BNB belongs to the largest crypto exchange in the world, Binance. It serves as a utility token on the platform, and as the exchange has grown, so has the demand for BNB. Binance has remained a market leader in many arenas, creating launchpads and other exciting use cases for BNB. This has only served to push its price higher due to increased demand for the token. 

The exchange also conducts quarterly burns of the BNB token, in an effort to reduce the supply. If you know the laws of economics, then you know that less supply with high demand can only lead to an increase in value. This year alone, BNB has grown by 10x. Experts predict it could do another 10x by the end of the year, and the conditions look right for this to happen with large institutions joining the market. Judging by the rate BNB has grown over its short lifespan, it’s safe to assume the current price of $250 might seem like a bargain a few years from now. 

Summary of Investing in Binance Coin

This piece strives to educate you on the best ways and strategies to invest in Binance Coin – a promising token with lots of use cases and plenty of room to grow. By carefully following our advice on this piece, you should be able to enter the BNB market and make your investment safely and in a secure manner. 

We have described four ways to invest in BNB. You have to decide which method suits your investment style. However, it wouldn’t hurt to try a few of them before settling for one. Whatever you do, ensure you take the correct measures to secure your investment. You can do the same with the investment strategies and see which works best for you. Be sure to pay attention to the fees, payment modes supported, and risks that come with investing in BNB.