Binance is a cryptocurrency exchange that provides a platform for trading various cryptocurrencies. Binance Coin (BNB) is the native currency of the Binance platform.
Binance users can use BNB to pay for fees on the platform, including but not limited to: trading fees, listing fees, and withdrawal fees.
Binance will issue a maximum of 200 million BNB. 100 million of the BNB will be distributed to ICO participants and early investors, while the remaining 100 million will be used to incentivize users to hold and use BNB on the platform.
So how can you get your hands on some Binance Coin? Here are a few options:
Option 1: Buy Binance Coin on an Exchange
If you want to buy Binance Coin (BNB), you can do so on any major cryptocurrency exchange that offers the token. Some of the most popular exchanges that list BNB include Binance itself, Kucoin, OKEx, and Huobi.
To buy BNB, simply create an account on one of these exchanges, deposit some funds (BTC or ETH is usually best), and then place an order to buy BNB using the exchange’s trading interface. Once your order is filled, you’ll have BNB in your account balance on that exchange.
Option 2: Earn Binance Coin by Trading on the Exchange
If you don’t want to outright buy BNB, another option is to earn it by trading on the Binance exchange. Every time you make a trade on Binance, you’ll be charged a small fee (usually 0.
1%). If you pay that fee with BNB, you’ll receive a discount.
The discount starts at 50% for the first year and decreases by half each subsequent year. So in year two, you’d only get a 25% discount; in year three, a 12.
5% discount; and so forth. Long-term holders of BNB can therefore save quite a bit on trading fees by using the token to pay their fees.
Option 3: Get Paid in Binance Coin for Providing Liquidity on the Exchange
Another way to earn Binance Coin is by providing liquidity to the exchange through what’s called “margin trading.” Margin traders provide funding to other traders who are looking to trade with leverage.
The trader who provides funding is paid interest on their loan, and they also collect a portion of any profits (or losses) made by the leveraged trader.
To get started margin trading on Binance, you first need to transfer some funds into your margin account balance. Once you have funds available in your margin account balance, you can start providing liquidity to other traders by lending them money or selling them cryptocurrency contracts.
If you lend money to other traders, you’ll earn daily interest payments in whatever currency you lent (e.g., USDT).
If you sell cryptocurrency contracts, you’ll earn a percentage of any profits (or losses) made by the trader who buys your contract. And if they use leverage when buying your contract, you’ll earn even more! .
You can also choose to be paid in BNB instead of whatever currency you originally deposited into your margin account balance. If you do this, you’ll receive a 0.
5% interest rate discount on all loans that you make (paid in whatever currency the loan is denominated in). .
So there are three main ways to earn/acquire Binance Coin: buying it outright from an exchange, earning it through trading activity on the exchange, or providing liquidity to margin traders through margin lending/selling contracts.