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Best Places to Buy Binance Coin | The Ascent by Motley Fool – The Motley Fool




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Binance Coin (BNB) is a well-known cryptocurrency that soared over 1,250% in value in 2021. As we'll see in this article, the BNB token has several uses, including reducing trading fees on the Binance exchange and paying transaction costs on the Binance Smart Chain. Read on to find out about the best places to buy Binance Coin cheaply and safely.
Binance.US
Our Rating:
Bottom Line
Binance.US stands out for its low-fee approach to crypto investing and it has a good list of available cryptocurrencies. However, it is not available in every state, which does drag on our rating some.
Fees:
Up to 0.1%
Account Minimum:
$10
Binance
Our Rating:
Bottom Line
Binance is a low-fee platform with a wide range of cryptocurrencies and a lot of functionality. However, its full product is not available in the U.S., and it is dealing with regulatory issues in various countries.
Fees:
0.02% to 0.1%
Account Minimum:
Varies by deposit method
KuCoin
Our Rating:
Bottom Line
One of the biggest pitfalls for KuCoin right now is that it's not licensed in the U.S. It's a platform with a lot of potential, but is best right now for experienced traders living outside the U.S.
Fees:
Fees vary
Account Minimum:
$0
TIP
Investing in crypto can be extremely risky. We think investors should approach these assets like any other technological investment — with a long-term mindset and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend select cryptocurrencies to our community. But we encourage everyone to be well versed prior to investing to understand the potential risks and rewards.
Binance Coin is the utility token for Binance, a popular international cryptocurrency exchange. Binance Coin spent most of 2021 as one of the top 10 cryptos by market capitalization, making it one of the more established cryptocurrencies on the market.
What sets Binance apart from other cryptocurrency exchanges is it also operates the Binance Smart Chain. This makes Binance Coin a programmable cryptocurrency like Ethereum (ETH) that can host decentralized applications and other cryptos. Ethereum was the first smart contract cryptocurrency, and the lion's share of applications are built on its ecosystem. But it struggles with heavy congestion and high transaction fees. As a result, a number of projects opted to use the Binance Smart Chain, where fees are much lower.
There are several different types of fees involved in buying cryptocurrencies like Binance Coin. You'll often pay to deposit money with the exchange, application, or brokerage you use. Trading fees are usually reduced for high-volume traders or by using the exchange's utility token, such as Binance's BNB. And withdrawal fees can change dramatically depending on what token you want to withdraw. In a worst-case scenario, you could end up losing more than 10% of your cash to exchange fees.
READ MORE: Top cryptocurrency apps and exchanges
Here's a summary of the fees you may pay when buying the BNB coin:
Here are some tricks every trader can use to reduce the fees they pay.
Most cryptocurrency exchanges let you transfer fiat currency (traditional money like U.S. dollars) using a bank transfer for free. Credit card payments are almost always more costly, especially as you may pay an additional fee to the card issuer. Debit card payments can cost less, so if this is your preferred method of payment, look for a platform with low debit card fees. If you already own cryptocurrency and want to trade it for Binance Coin, it should be free to deposit crypto directly to your account.
Cryptocurrency trading fees can be confusing. Plus, each platform uses different fee structures, so it's difficult to compare. Some platforms charge a set dollar amount per trade, while others charge a percentage. Some also charge a high spread — the difference between the buy and sell prices quoted for that crypto. This is often hidden, or only clear when you make the transaction, but it could mean you end up with less BNB for your buck.
One surefire way to know which crypto exchange will give you the lowest fees is to experiment. Find out how much BNB you would get for, say $100, on the platforms you might use. The results can be surprising. You don't need to deposit any money to view a sample trade (though you may need to create an account).
Withdrawal fees can take a significant chunk out of your profits. Nobody wants to get hit by huge fees when they want to access their money. Think about how you plan to withdraw your assets and look for the platform that will do it cheaply. Some platforms offer free withdrawals, which might give them the edge over their competitors.
If you're withdrawing dollars to a bank account, you may find you'll pay as much as 1% on the total — or a set amount such as $25 per withdrawal. Crypto-to-crypto withdrawals are often cheaper, but that depends on which crypto. For example, withdrawing BNB on the Binance Smart Chain might cost $0.20, whereas withdrawing ETH using the Ethereum network could cost $15 or more.
Binance Coin can be traded on several cryptocurrency platforms. That said, some cryptocurrency exchanges do not trade their competitors' utility tokens. The coin also works with a number of decentralized finance platforms and is accepted by various merchants.
READ MORE: Cryptocurrency availability by exchange
The main place you can use Binance Coin is on the Binance network. BNB holders can:
No cryptocurrency is completely safe. It is a relatively new and unregulated industry and we can't be sure how it will evolve. Some believe this is the future of finance, and others think the market will collapse completely. Common risks associated with cryptocurrency investing are high volatility, cryptocurrency scams or exchange hacks, and the potential impact of newer technologies such as quantum computing.
Increased regulation may have a significant impact on all cryptos, but Binance Coin may be badly hit. For a long time, Binance followed a customer-first (rather than regulator-first) approach, offering products such as tokenized stocks that put it in regulatory crosshairs. In 2021, it had trouble with authorities as far afield as the U.K., Japan, the E.U., Thailand, and Malaysia. It is now making moves to appease regulators, but it remains to be seen how effective these will be. Binance already has a separate site called Binance.US to comply with U.S. regulations with restricted functionality.
Given the risks involved in cryptocurrency investing, it's advisable to only invest money you can afford to lose and use a reputable cryptocurrency exchange. Before you buy BNB or any other crypto, make sure your emergency fund is topped up and you're good on retirement savings. That way, you'll have a cushion if your BNB investments fall in value.
Binance.US
U.S. investors
Up to 0.1%
Binance
Global investors wanting a more diverse crypto selection
0.02% to 0.1%
KuCoin
Experienced non-US investors
Fees vary
Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since the summer of 2019.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
Emma Newbery owns Binance Coin and Ethereum.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
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