Buy Binance Coin: Is It Worth It? The Whole Truth
Published: 12 December 2020 by Valentina
In 2017, a new cryptocurrency emerged on the international scene and almost immediately attracted the attention of investors. Many wonder whether buying Binance Coin is a good investment for the future. Let’s find it out together in this guide.
In two years, BNB (Binance Coin) has managed to accumulate an impressive market capitalization and enter the top 10 cryptocurrencies measured by that metric. But will it be able to maintain this growth rate? How do you buy Binance Coin?
Let’s start by answering this last question: Buying Binance Coin is not difficult, just follow these 3 steps:
- You register with a regulated CFD broker, which is always preferable to Exchanges (you will find out why later).
- Practice on the Demo account to become familiar with the platform.
- Make the minimum required deposit and start investing for real.
These are essential steps to buy Binance Coin safely and without paying commissions.
Thanks to CFD brokers like eToro, we can trade cryptocurrencies like Binance Coin in total safety, avoiding the risks associated with Exchanges. These are the best platforms available:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
Binance Coin: What it is and how it works
Binance Coin (BNB) was founded by the Chinese cryptocurrency Exchange called Binance. The asset was launched on July 8th, 2017 to provide a practical currency to use on the Binance platform.
Binance Coin was born as a token based on ERC 20, issued through the Ethereum blockchain. But in 2019, this currency switched to its own blockchain.
The enormous volume of trading has dragged up the value of this cryptocurrency, which has rapidly climbed the charts of trading and capitalization.
The primary functions of Binance Coin are 3:
- Acting as a cryptocurrency for investments.
- Reducing fees on the Binance platform.
- Be used for paying goods on websites that accept Binance Coin.
Binance Coin’s predictions are mostly positive, particularly due to the fact that this currency combines both the speculative benefits of cryptocurrencies and the ability to get discounts on Binance.
Binance Coin value
To understand the real value of Binance Coin, let’s quickly retrace its growth:
- BNB started off with a price of $ 0.1 at launch.
- By the end of the year, it had already hit $ 2, which became then $ 20 in January 2018.
- In 2018 there was a decline of up to $ 10, but at that point it had already attracted many new investors and the value started to rise again. It dropped again at the end of the year, reaching $ 4.
- In 2019, Binance Coin’s value reached $ 39 and its market cap exceeded $ 5 billion.
- 2020 has seen a continous growth despite the retracement due to the coronavirus pandemic.
Currently, the trend of BNB is – once again – of strong growth.
Is buying Binance Coin worth it?
We know that buying cryptocurrencies is an investment with enormous potential, but you have to be ready to jump on a “roller coaster”. The prices of this asset make incredible changes and fluctuate like few other markets.
If we see the growth of Bitcoin, we can realize how profitable it can be to focus on this market. However, not all cryptocurrencies are growing. So, how to distinguish those with real potential?
An historical graph can help us because, unlike the classic trends of emerging cryptocurrencies, which after an explosion (immediately after the launch) flatten without showing great signs of recovery, Binance Coin shows a strong growth trend and, despite the dizzying fluctuations, has already surpassed the price levels reached immediately after launch.
How to buy Binance Coin
First, we must stop thinking that Binance Coin is a different cryptocurrency. Even if it belongs to an Exchange, its greatest potential is found as a speculative asset, in short: As an investment.
So, to buy Binance Coin, you use exactly the same methods used to invest in cryptocurrencies: Exchanges and CFD Brokers.
- All Exchanges, including Binance, are websites that are not supervised and operate with their own rules, so they do not offer deposit guarantees and, unfortunately, are subject to frequent cyber attacks, during which many cryptocurrencies have been stolen.
- CFD Brokers, on the other hand, are intermediaries regulated and supervised by an external supervisory body, which verifies compliance with the rules. They are also very safe because they do not provide for the “possession” of cryptocurrencies and are therefore not subject to theft.
We have tried to outline the main differences between these two investment methods:
Pros > You “really” buy cryptocurriences
Cons > Commissions to be paid
> No license
> You can only invest upwards
> Serious security concerns
> Slow transactions
Pros > They are safe and licensed
> You can invest both up and down
> There are no commissions
> There is no risk of cryptocurrency theft
> Immediate transactions
Cons > You don’t “really” buy cryptocurriences
If we want to summarize we can say that to buy Binance Coin:
- The Exchanges are ultimately expensive (commissions to be paid), unsafe (they suffer frequent cyber attacks), and allow you to earn only in the event of a rise in prices.
- CFD brokers, on the other hand, are safe and regulated, do not charge commissions and also offer the possibility of earning when prices fall (short selling).
Buy Binance Coin with the best platforms
Following the assessments we have made, it is now easier to decide which is the most advantageous method to buy Binance Coin. However, CFD Brokers are not all the same and you need first to verify that the chosen intermediary has an authorization from either FCA or CySEC.
The best trading platforms are those provided by online brokers who have the best mix of security, services, and convenience. In the next paragraphs, we will show you what they are.
The trading platforms offered by these brokers are very intuitive and simple to use. To invest you just need to:
- Buy the Binance Coin CFDs to profit from the cryptocurrency price growth
- Sell the Binance Coin CFDs to profit from the drop in the cryptocurrency price
Once the desired price is reached, the transaction is closed and net profits can be withdrawn or reinvested, without commissions.
Following the analysis carried out by OnlineTradingCourse.net, it emerged that the best platforms to buy Binance Coin safely are those offered by eToro, ForexTB and IQ Option.
eToro: Intuitive platform to buy Binance Coin
eToro is certainly the market leader when it comes to online brokers. Its base of 10 million users makes it the most popular intermediary in the world and its reliability is also guaranteed by the FCA license.
The most recognizable feature of eToro is its intuitive platform which makes online trading quick and easy.
Here’s what the Binance Coin CFD looks like on the eToro platform:
To buy Binance Coin (or sell it) you need to click on “Invest”, decide whether to buy or sell the cryptocurrency, and how much to invest in the operation.
Are you a novice trader or you don’t have time to invest independently? With eToro you can make automatic investments by copying the market operations of the best traders in the world (on eToro). Everything is automatic and free of charge thanks to Copy Trading.
To use Copy Trading you need to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading signals for Binance Coin
ForexTB is now very popular in the world of online trading and its fame is due, in particular, to its free services for investors.
First of all, ForexTB offers two free trading platforms that meet the needs of any investor:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Buying Binance Coin on ForexTB is simple, just click on buy or sell, and decide how much to invest in the transaction.
CySEC, which regulates and authorizes online brokers at European level, has regularly authorized ForexTB.
Among the free services, ForexTb offers a Trading Course designed to provide the necessary information about online trading. Considered the best basic course on the market, you can download it for free by clicking the link below:
In addition, on ForexTB you can operate with 70% success rates by taking advantage of the free Trading Signals. These are operational indications developed by Trading Central, accessible from the official link below:
IQ Option: Buy Binance Coin with 10 Euro
IQ Option has shown a particular sensitivity towards less capitalized traders who sometimes feel cut off from the market.
To be able to include these investors, IQ Option has set a minimum deposit to open a real account: only 10 Euros.
This minimal entry threshold has allowed many new investors to enter the fascinating world of trading. On IQ Option, it is possible to buy Binance Coins (or sell them) by investing only a few Euros in the operation.
IQ Option is authorized by the FCA, so it allows you to trade in total security.
IQ Option still offers a free and unlimited Demo account which can be accessed at any time, so you can practice without risking anything.
The IQ Option trading platform is very advanced but at the same time easy to learn, ideal for both novice and more experienced traders. The tools and indicators available are very professional and highly customizable.
In terms of training, IQ Option provides an educational area rich in content and in-depth material, all offered for free.
Click here to register on IQ Option (official link)
In its short history, Binance Coin has shown impressive results and the forecasts are still bullish. However, to better understand what the future scenarios of BNB could be, we summarized the forecasts of some renowned cryptocurrency analysts:
- WalletInvestor is bullish on BNB; by the end of 2021, after numerous fluctuations, it expects it to reach $ 32, in 2023 $ 37, in 2024 $ 43, and in 2025 $ 42.
- TradingBeasts expects moderate growth for Binance Coin over the next 4 years. In 2021, the value of BNB will remain around $ 15. In 2022, the cryptocurrency will rise to $ 23 to reach $ 28 by 2023.
- DigitalCoinPrice predicts that BNB will fluctuate within the $ 30-40 price range over the next 5 years. In 2021, it will rise to $ 38, then drop to $ 32 in 2022, touch $ 27 in 2023, and climb back to $ 46 in 2024. After that it will then stabilize in 2025 around $ 35.
Binance Coin pros and cons
In just a few years, BNB has managed to take a leadership position in the cryptocurrency market. Currently, Binance Coin is paired with more than 400 other currencies, making it one of the most liquid trading options in the market.
Here is a summary of the Pros and Cons of Binance Coin:
- Binance Coin is linked to around 400 currencies
- Binance fights inflation every 3 months by “burning” BNB
- Binance’s success leads to increased confidence in BNB
- Many services and products are connected to Binance Coin and are constantly updated
- The link with the Binance Exchange is a double-edged sword
- Any Binance security issue could affect BNB’s listing
Given our analysis, the opinions of the experts, and the general bullish sentiment of the cryptocurrency market, we can be optimistic about the future of BNB. Buying Binance Coin appears to be an excellent investment, especially in the short and medium term, when strong volatility is expected, which is essential for making substantial profits.
We recommend that you start investing by practicing on the Demo account, without risk, and then invest the minimum deposit required by the Broker you have chosen and buy Binance Coin on the real market.
Here are the official links of the free Demo accounts offered by the best cryptocurrency trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the IQ Option Demo account for free with this link
Binance Coin (BNB) is the cryptocurrency launched in 2017 by the Binance exchange
Yes, at the moment the trend is up but caution is needed, the volatility is very high.
Analysts are optimistic about BNB’s future and forecast growth in the short and medium term.
The platforms offered by the best CFD brokers such as eToro are the most suitable for investing safely on Binance Coin.