What is BNB

What is BNB and how does it work? Is BNB a good investment? What is the full meaning of BNB?

What is BNB

Table of Content

  1. What is Binance Coin BNB?
  2. What is the cryptocurrency Binance Coin and who created it
  3. How to Buy and Store BNB
  4. The best ways to make money with BNB
  5. BNB cranes
  6. Trading BNB on the stock exchange
  7. Investing in BNB
  8. BNB Staking
  9. NFT-marketplace Binance
  10. Principles of BNB cryptocurrency and its features
  11. Is it worth buying Binance Coin today
  12. BNBUSD Exchange Rate Forecast for 2022
  13. Where to buy
  14. Frequently Asked Questions

What is Binance Coin BNB?

Binance Coin or BNB is a cryptocurrency that provides the work of a large ecosystem of the Binance cryptocurrency exchange. In addition to the exchange itself, it includes dozens of platforms and services: two blockchains, DEX, NFT-marketplace, ICO platform, crypto wallets, DeFi-services - in short, the company provides services in all areas of the crypto market. Every year the ecosystem is growing rapidly, and without BNB its existence is impossible, which gives reason to talk about the great potential of cryptocurrency.

What is the cryptocurrency Binance Coin and who created it

Binance Coin (BNB) is the internal currency of the exchange of the world's most popular cryptocurrency exchange Binance. It is used for transactions in the Binance Chain and Binance Smart Chain networks, payment and reduction of trading commissions on the exchange, purchase of goods in partner stores. Also, BNB can be used for trading and passive earnings on staking.

In other words, the BNB cryptocurrency serves as a fuel (used to pay commissions) in the large Binance ecosystem:

bnb crypto

It includes both the exchange itself and various third-party services for analytics and earnings. From year to year, the number of clients and projects in the Binance ecosystem is growing, which is one of the most important reasons for the growth in the price of BNB – the demand for cryptocurrency is increasing following the growth of projects related or supported by Binance. Here are some of them:

However, such extensive opportunities for using Binance Coin were not always there. Initially, the BNB cryptocurrency was created as a token based on Ethereum (the sale began in 2017 at a price of less than $ 1) and it had one function - the ability to save on trading commissions through the purchase of a certain amount of BNB. In 2019, a separate Binance Chain network was created, to which all issued BNBs "moved", no longer the cryptocurrency was associated with ether. After the advent of their own blockchain, developers were able to freely refine it and add new features, which made it possible to create an extensive ecosystem.

The founder and CEO of the Binance cryptocurrency exchange, Changpeng Zhao, is by far the richest man in the crypto world, Bloomberg estimated his fortune at almost $ 100 billion in early 2022 (about 10th place in the ranking of the richest people on the planet). He began his career in the crypto market very extremely – he mortgaged a house and bought bitcoins with all the money. The average purchase price in 2014 was $ 600, and at the beginning of 2015 the price fell below $ 200 - losses amounted to more than 60%. Of course, over time, prices have increased, but such an experience will not be wished on anyone.

bnb price

In 2017, when the bitcoin rate flew to $ 20,000, Changpeng still did not sell his bitcoins and thanks to this became a billionaire. There was an opportunity to create a serious project in the crypto industry - so the idea of the Binance exchange appeared, which eventually became the most important player in the crypto market and made the Chinese investor several times richer.

Today, the company employs more than 4,000 employees, including many experienced specialists in the blockchain industry.

How to Buy and Store BNB

Trading in the Binance Coin cryptocurrency began in 2017 immediately after the creation of the exchange. During the ICO, the company managed to attract $ 15 million, and the price of the coin started from $ 0.10 and a month later already reached $ 3. For several years, the BNB rate fluctuated in the range of $ 10-40, and in 2021 there was a breakthrough - against the background of a rapid increase in popularity, it almost reached $ 700!

In order not to miss the next rise of the BNB cryptocurrency, you need to buy it somewhere. If you search, you can find dozens of services and applications for these purposes, but due to additional conditions, the final price can vary greatly. On the blog there is an article The best ways to buy cryptocurrencies profitably, where I analyzed the pros and cons of buying cryptocurrencies through exchanges, EPS, wallets, p2p platforms and even for cash.

It is most logical to store BNB in the account of the Binance crypto exchange - so you can use a variety of ways to earn money and promotional offers. However, other possibilities are also worth exploring, because unlike Bitcoin and Ethereum, sending is much cheaper:

Basically, wallets differ in the level of protection and ease of use. The most reliable are cold wallets like Legder - they connect to the Internet only when necessary, which means that they are almost perfectly protected from hacking. Crypto exchanges and payment systems are constantly in the crosshairs of hackers, but in recent years the protection in them has become much better, so small amounts for everyday use are much more convenient to store there – due to the possibility of quick exchange with low commissions.

Mobile wallets allow you to store money without intermediaries, but it is not so profitable to buy and exchange BNB in them.

How to buy bnb

Estimated Cost


Estimated Total Time

5 min

What is necessary:

ID Card

E Mail

Phone Number

Payment Method

Tool: A cryptocurrency market.

Compare Cryptocurrency Markets

cryptocurrency market bnb

Find an exchange that lists BNB in one or more cryptocurrency pairings. Then sign up with your email address and password. Compare exchanges when buying BNB to find the lowest fees and the latest exchange rates. Note: Many exchanges require your full name, contact information, and ID before allowing you to trade.

Create an account


To create an account with an exchange, you must verify your email address and identity. Have your photo ID and phone ready.

Make Payment

make payment

If your exchange supports Binance Coin, you can buy bnb directly with dollar, euro, pound or any other currency of your choice. Some exchanges charge commission fees that vary depending on the amount of BNB you buy, so be mindful of the cost of your transaction. Note: Some payment methods have higher fees and credit card payments are usually the most expensive.

bnb buy

bnb coin buy

Select your chosen exchange to find the BNB match you want. Go to the markets section. Look at the buy bnb section and type in the amount of paired cryptocurrency you want to spend or the amount of bnb you want to buy. Note: Before completing the transaction, carefully review your transaction details, including the amount of Binance coin you purchased and the total cost of the purchase.

The best ways to make money with BNB

Binance Coin is one of the most popular cryptocurrencies in 2022, so there are many ways to generate income with it. Most of them, as expected, are associated with Binance and their number is gradually growing along with the development of the range of services of the cryptocurrency exchange.

BNB cranes

Binance Coin can be received daily for free in small quantities with the help of cryptocurrency faucets - sites that distribute crypto in small quantities for performing simple tasks: passing surveys, quests in games, viewing ads, etc. Also, usually once every 30-60 minutes you can earn a small amount just by visiting the site.

First of all, it is worth opening an account on the Faucetpay.io website - there is a large selection of taps and a wallet to which these taps withdraw funds. In this way, you can use several sites at once, and money will accumulate in one place.

bnb white papers project

Of the BNB cranes currently in operation, I have identified the following:

Trading BNB on the stock exchange

Since Binance Coin is directly related to the crypto exchange, using this cryptocurrency for exchange trading is the first thing that comes to mind. Moreover, this is an extremely volatile digital asset - only in 2021 the price soared 15 times, and then fell by 70%. Despite the fact that initially trading was possible only on Binance, today BNB is traded on all the best exchanges:

To make money on BNB trading, you will need a deposit on the exchange and some kind of trading system. I do not recommend using large sums if you are not confident in your actions – trading is a difficult and risky occupation. Be sure to compare the profitability of your trading with the profitability of Bitcoin or Bitcoin + Ether - and if the comparison is not in your favor, it is better to just buy and hold the cryptocurrency, i.e. invest.

Investing in BNB

As we found out earlier, the long-term prospects of Binance Coin are quite good – thanks to the good results of the crypto exchange and the deflationary economic model. For this reason, it makes sense to "walk" BNB, in other words, to buy and not sell cryptocurrency for a long time. Of course, the portfolio should already have Bitcoin and Ethereum, but another coin definitely does not hurt.

In my portfolio for 2022, Binance Coin occupies a little more than 1%. This is a very volatile cryptocurrency, so I fix profits with a strong price increase and slightly increase investments on drawdowns. In addition, I try to use the opportunities for obtaining passive income from staking.

BNB Staking

If you plan to keep BNB in your wallet for a long time, be sure to use it for staking on Binance – an alternative to traditional mining in cryptocurrencies that support the Proof-of-Stake algorithm. To earn money, it will be necessary to temporarily block the cryptocurrency in the wallet, as compensation you will receive additional passive income. There are several options for BNB staking.

Option No1: DeFi-staking. DeFi is short for "decentralized finance", in this area people use services on the blockchain to provide and receive banking services without intermediaries - loans, deposits and currency exchange. BNB staking through Binance Smart Chain allows you to earn about 5% per annum: 

At the same time, there is actually no minimum amount, and the withdrawal of money, if necessary, will take 1-2 days. Compared to traditional deposits, it's a lot more convenient, isn't it? Of the minuses, it can be noted that with DeFi-staking, the crypto-exchange is not responsible due to errors in the code of third-party services or hacker attacks on them.

Option No2: Fixed staking. This option is closest to the concept of "crypto deposit": funds are blocked (for 30/60/90 days), the rate is fixed and depends on the chosen period. For example, this is what the conditions of staking look like with 60 days of blocking:


The percentage of profitability is slightly higher than in DeFi-staking, but the ability to quickly withdraw money at the right time to sell cryptocurrency is lost. There is also a slight disadvantage in that profits are not automatically reinvested.

Option #3: Binance Vault. This is an option for earnings for beginners: BV combines several services available on the crypto exchange:

In my opinion, it is better to independently select the ways of earning on the crypto exchange, but if you are too lazy to understand - BNB Vault will allow you to make money on autopilot. Funds can be withdrawn instantly, also an important point. The yield here changes constantly and sometimes can really exceed 10% per annum, but from what I have seen, on average, the figure fluctuates in the range of 5-7%. The main component of profitability is the listing of new cryptocurrencies in Binance Launchpad.

NFT-marketplace Binance

Most NFT marketplaces run on Ethereum, but some use Binance Smart Chain, including binance's "native" marketplace. It features tens of thousands of NFTs that can be bought and sold for ETH, BUSD (a dollar-pegged stablecoin) and BNB. Here, for example, is one of the most expensive lots sold for Binance Coin:

Principles of BNB cryptocurrency and its features

Like any other cryptocurrency, Binance Coin works on the basis of "blockchain" technology – a special type of database in which information is stored in separate blocks interconnected by mathematical algorithms and cryptography. Information in the blockchain is stored forever and cannot be changed, which gives a very high level of protection for transactions and monetary investments. The blockchain of the BNB cryptocurrency is called Binance Chain and was launched in 2019.

Blocks with information are added in chronological order and are checked using a consensus algorithm - a special protocol by which validators determine the authenticity of user transactions. Binance Chain works on the basis of the Tendermint algorithm associated with the "task of the Byzantine generals". If you do not go into details, to add a new block, it is enough to confirm from 2/3 of the network nodes - this allows you to abandon mining (new BNBs are not added to the network) and increase the speed of the blockchain (Binance Chain can process a million operations per second). To achieve this result, the developers had to make some compromises:

In 2020, these problems were solved through the launch of Binance Smart Chain – a separate blockchain for creating smart contracts compatible with Binance Chain and Ethereum. It became a direct competitor to Ethereum and took part of the market for DeFi applications and NFT, and also added the possibility of staking - passive earnings on BNB. Anyone can become a BSC validator, so decentralization is already present in this network.

Since Binance Chain does not use mining, 200 million BNB created at the start is the maximum and they will not appear again. Moreover, since the very beginning of the work of the exchange, quarterly burning of BNB has been carried out. To combat inflation, the board of directors every 3 months buys and destroys cryptocurrency in the amount of 20% of the company's profits. Thus, the amount of BNB gradually decreases, and the price of the token after each burning additionally increases.

In 2021, the mechanism for destroying cryptocurrency was changed – now 10% of the commissions for each transaction are burned (a similar scheme is already used in Ethereum). The ultimate goal of incineration is to reduce the amount of BNB in the network to 100 million.

To summarize, Binance Coin has several important advantages over Bitcoin and Ethereum:

As a result, the opinion about the cryptocurrency may be different, but in any case, BNB is an interesting tool for earning, so it is useful to know about all the opportunities.

Is it worth buying Binance Coin today

The cryptocurrency of the Binance exchange is considered one of the most promising on the market, but today may not be the best time to buy it. In this section, I will tell you how to independently assess the current situation and which direction of the transaction with BNB should be considered - buying or selling.

The first thing I usually focus on is technical analysis of the market. It allows you to use mathematical formulas and indicators to analyze the price chart and draw a conclusion about the probability of growth or fall in the future. You can independently consider one or more indicators, but for convenience I use the Tradingview widget with automatic analysis:

The results speak for themselves: if the widget shows "buy" or "sell", then the price is likely to rise and fall accordingly. The accuracy of such an analysis is not that very high, but it gives an understanding of the current market situation and in which direction it is worth looking for transactions.

Next, it is important to evaluate the comparison of the results with the "barometer" of the industry – Bitcoin. Historically, compared to Bitcoin, the BNB cryptocurrency shows excellent growth dynamics, especially in 2021 – the ratio reached 0.01, which with a BTC price of several tens of thousands of dollars is a very good result. Chart of the course of Binance Coin to Bitcoin on May 23:

When the BNBBTC ratio is at highs, you need to make purchases with caution - there is a possibility that the price has accelerated too much and there may not be enough strength for further growth. If the ratio has pulled back slightly from the highs, buying a BNB becomes more attractive, simply because historically the ratio is rising.

Well, the last tool that I use to analyze cryptocurrencies is Google Trends:

Cryptocurrencies are extremely dependent on popularity in the media and social networks. The more mentions there are, the more people get to know and be interested in BNB, the volume of purchases grows – and, as a result, prices. For example, the graph shows that in 2021 the Binance Coin cryptocurrency is mentioned on average several times more often. Also, it is impossible not to notice a huge surge in popularity in early 2021 – just when prices soared 10 times. While the hype began to subside, the price of BNB fell from $ 700 to $ 250 - when tracking the popularity, we would not miss the moment to fix profits.

BNBUSD Exchange Rate Forecast for 2022

Naturally, before buying cryptocurrency, I would like to assess its prospects for the coming year – whether the price will grow or not. Making a forecast of the BNB rate in 2022 is not as easy as it seems - it is influenced by many factors:

If we summarize all of the above, the prospects for Binance Coin are quite good - there are many reasons for the price increase: a constant decrease in the number of BNB in circulation, an increase in the number of traders and the popularity of a crypto exchange, an increase in the popularity of Binance Smart Chain. 

BNB Burns

BNB uses an Auto-Burn system to reduce its total supply to 100,000,000 BNB. The BNB Auto-Burn mechanism adjusts the amount of BNB to be burned based on BNB’s price and the number of blocks generated on BNB Smart Chain (BSC) during the quarter. This offers greater transparency and predictability to the BNB community.

BNB lost in eligible cases can also be reimbursed through the BNB Pioneer Burn Program. This counts users’ lost coins towards the official burn count and reimburses them with BNB.

BNB additionally uses a real-time burning mechanism based on gas fees. A fixed ratio of the gas fee collected is burned in each block, with the ratio decided by BSC validators.

You can learn more about BNB burns at https://www.bnbburn.info/.

Where to buy BNB
Binance WhiteBIT
KuCoin Deepcoin
Huobi Global BitMart
Gate.io XT.COM
Binance.US Dex-Trade
Kraken CoinEx
Bybit ExMarkets
Bittrex AAX
Poloniex BtcTurk | Pro
OKX WOO Network
Crypto.com Exchange Bitbns
Phemex KickEX
BitGlobal Paribu
AscendEX (Bitmax) EXMO
LBank Bitexen
MEXC Giottus
Tokocrypto MAX Exchange
Bitrue CEX.IO
Frequently Asked Questions
Is BNB a token or coin?

BNB is a token that was created by Binance in 2017.

What can I do with BNB coin?

Make credit card payments. Pay for travel arrangements (on select websites) Buy virtual gifts. Process payments. Make investments. Make loans and transfers. Donate to charity.

Can BNB be mined

Yes, BNB can be mined by using ASICS and Cloud mining methods.

Can BNB be staked

Yes, you can stake BNB by using Binance app.