How to earn and spend Binance Coin (BNB)?
BNB is the iconic token of the famous trading platform Binance. The token has many uses and provides great benefits to its shoulders when using the Binance exchange.
You are most likely wondering how to get your hands on it, potentially without even having to invest any money in it. After all, there are plenty of opportunities to get other cryptocurrencies for free, so why shouldn’t that be the case with BNB?
Some may have BNB in their possession, but do not know how to spend it. It is only natural to try and find out how to use your BNB.
In this guide, we will explain the different methods available to earn BNB, and also to use it. Given the many different options out there, this list is not exhaustive – in this guide we will show you our top three options for using it.
Buying and Selling BNB on a Trusted Exchange Site
Before explaining your options for earning and spending Binance Coin, we would like to point out that it is possible to purchase it directly using an exchange. However, you have to be careful to always use a reliable platform that you are not going to get caught out on.
Since it is not always easy to find a good exchange site that has BNB available, we have made a small list of the best platforms out there in the table above. Feel free to use one of these sites to carry out your buying or selling transactions securely.
How can I get BNB without investing?
The dream of many people is to be able to earn money without having to put in the effort to get it. Unfortunately, this is something that is in practice impossible, as they say – money doesn’t fall from the sky.
However, if we think of BNB as a form of money, there are a few options available to you to get it without necessarily having to invest your own money. Of course, these methods will not make you rich, but they are a good way to own some BNB for less.
By referring users to the Binance site
The first option to get BNB without investing is to refer friends (or anyone else) to the exchange. When they open an account through your referral link, Binance considers them to be your referrals.
Each time one of these people trades on the platform, then you get 20% of the transaction fees they paid as a referral reward. If one of your referrals does a lot of trading, or if you’ve sent a lot of people to Binance through your link, then you can earn some pretty good money.
The referral scheme earnings are distributed in the cryptocurrency that was used to pay the trading fees, but it is possible to convert all these digital currencies into BNB (see next point).
Binance has also set up a new referral programme, which no longer grants 20%, but 40% to referrals who have 500 BNB in their account. If your plan is to send huge numbers of people to the trading platform through your links, this is an investment to consider, even if it means spending a lot of money.
However, given the ever-increasing popularity of Binance, the 500 BNB that you are going to buy will most likely rise in value in the future and therefore you can still generate additional profits through this investment.
By converting cryptocurrency fractions into Binance Coin
When you are trading on Binance, you have two options for paying your transaction fees. Either you use BNB and benefit from a tidy fee reduction, or you don’t use BNB and you pay the fees directly with the traded cryptocurrencies instead.
In the latter case, you may end up with fractions of cryptocurrency that you will no longer be able to trade on the exchange because their value is too low. When Binance was launched, you couldn’t do anything with these fractions of digital assets, but now you can convert them to BNB.
Of course, this usually won’t earn you more than a few pence on each conversion. But since you couldn’t have done anything else with it, it’s a sum of money that is always good to accept.
If you have referred other users, they can also earn you cryptocurrency when they carry out this conversion. Unfortunately, if they don’t do much trading, you will only receive fractions of crypto as commissions. Either way, you can also convert these sums into BNB.
Via the BNB Vault programme
To participate in the BNB Vault programme, you must have BNB. Strictly speaking, therefore, it isn’t a way of getting BNB without investment. However, if you already own some, for example through one of the two methods explained above, or if you plan to invest in BNB anyway, the BNB Vault is a great way to get additional tokens from the project.
To participate in the BNB Vault, you must deposit your tokens in a special kind of wallet and leave them there. You can then automatically participate in Launchpool, Savings, DeFi staking and many other projects at the same time.
Here are some examples of the options available to you:
- The Launchpool allows you to earn tokens from projects that use this platform to enter the market. You can then sell these tokens, HODL them or send them to someone else.
- The Savings programme will distribute interest calculated daily.
- For DeFi staking, your rewards depend on the DeFi (Decentralised Finance) project chosen, as each has its own mode of operation which can be very different from one to another.
Where can I spend my BNB tokens
If you already have BNB in your possession, you may be tempted to spend them. Of course, if you believe in the project that you think your investments are going to rise further in value, there is no reason to sell or use them. However, you are always free to do whatever you like with your BNB.
On the one hand, you can use BNB as you can with other digital assets, such as paying with a crypto bank card or paying your employees’ salaries. On the other hand, there are a few special ways to spend BNB that are specific to this cryptocurrency.
To reduce your trading costs on Binance
Binance allows BNB holders a fee reduction when trading on the platform. Every time you decide to use BNB to pay for your trades, you get a discount.
This reduction was intended to be dropped every year for five years, going from 50% the first year, to 25% the second, 12.5% the third and 6.25% the fourth, ending at 0% in 2021. However, the platform decided to maintain a 25% reduction in trading fees for an indefinite period of time for people who decide to use BNB.
In addition, for people who have a certain number of BNB in their account, additional discounts, cumulative with this 25%, are up for grabs. These transaction fee reductions depend on the volume traded in a given month and the number of BNB owned by the user.
The system is based on a 10-level VIP status. Each status is achieved by owning a minimum number of BNB and trading a certain volume in BTC each month. Level 0 offers no additional discount, while VIP 3 (500 BNB and over 1,500 BTC traded) offers a 30% reduction for market makers, VIP 6 (3,500 BNB and 20,000 BTC in volume) 50% for makers and 30% for takers, while the last level, VIP 9 (11,000 BNB and 150,000 BTC traded), offers a whopping 80% reduction for makers and 60% for takers.
Using your BNB to participate in an ICO on the Binance Chain
Once upon a time, the Ethereum blockchain was the only way of raising funds for cryptocurrency projects. Nowadays, there are many available – including that of Binance. Even though compared to Ethereum there have still been relatively few ICOs, it is nevertheless gaining traction and could eventually overshadow Ethereum.
Just as you need to own ETH to take part in an ICO on the Ethereum network, you need to own BNB to buy tokens for a project that uses Binance Chain for its ICO.
Using BNB to make purchases on Binance DEX
Many decentralised exchanges (DEX) work with the Ethereum blockchain. But Binance also spotted an opportunity to launch its own one, Binance DEX.
On a DEX running Ethereum, it is necessary to use ETH to make transactions. The principle is similar with Binance DEX, it is necessary to use BNB if you want to get some of the tokens being launched.
Some projects are exclusive to Binance’s blockchain, while others are evolving on other blockchains as well. Regardless, Binance DEX’s responsiveness, low transaction fees, and transaction processing speed significantly outperform other competitors in the industry right now (February 2021).
As a result, many projects have decided to transfer at least some of their tokens to Binance’s blockchain in order to overcome the current drawbacks of other networks. This does not mean that Binance will eventually become the benchmark DEX, but it does mean that it may at least temporarily establish itself as a decent alternative to other DEXs.
If you are having trouble getting tokens from other projects due to high transaction costs, you can always take a look at Binance DEX and buy them with your BNB. Likewise, for projects that are only available on this exchange, it will also be necessary to use BNB to invest in it.
We hope you enjoyed our article on earning and spending BNB tokens. As we said in the introduction, we have decided to limit ourselves to a few examples, focusing as much as possible on those exclusive to the mighty little BNB.
As you have seen, without investing your money directly, it will be difficult to obtain large sums. However, there are ways of earning BNB without having to dip into your savings.
On the spending side, we hope we have shown you that BNB will be useful for performing a variety of different actions within the Binance ecosystem. Unlike other projects, the platform has created many use cases for its token, further increasing its value.
If you want to know more about BNB, we invite you to take a look at our other guides related to this project. Each time, we tackle a different aspect, which should allow you to broaden your knowledge in general.
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Président et Cofondateur de MinedHack et fervent défenseur de la Blockchain depuis 2017, je suis conscient que sans explications et vision de l’industrie son adoption n’aura jamais lieu. J’ose espérer en tant que Reporter et Rédacteur de CoinTribune aider à cette mission.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.