Crypto Dictionary : BNB, what is it ?

The Build and Build (formerly “Binance Coin”, or BNB) is the native cryptocurrency of Binance and the Binance Smart Chain (BSC), which is the blockchain dedicated to the decentralized finance of the exchange platform. The impressive evolution of the Binance centralized platform has propelled this token among the altcoins with the largest market capitalization (Market Cap).

Besides the ability to buy, sell or trade your tokens , BNB has several functions in this ecosystem. Initially it allows you to have a reduction in trading fees on the exchange when you pay them in BNB. It provides liquidity to new Binance Smart Chain projects and takes advantage of the platform’s launchpads. 

It is also used to buy NFTs on the Binance marketplace and can be saved (staking) to generate interest. Depending on the number of BNB the user has, more or less cashback is obtained when spending with the Binance Visa Card.

FREQUENTLY ASKED QUESTIONS WHEN BUYING BNB

Can you buy BNB via Paypal ?


On Binance, you have the possibility to buy your cryptocurrencies, and of course BNB. You can use their payment partner Paxful’s solution, for example, to buy Binance Coin (BNB) with Paypal.

Can you buy BNB anonymously ?

Most centralized platforms (CEX) are required – by regulation – to verify the identity of their users before purchasing . KYC (Know Your Customer) is mandatory on Binance for example. However, Bitcoin and cryptocurrencies were created for libertarian purposes with principles such as respect for privacy. It is therefore legitimate to ask the question.

We are not going to develop the question of decentralized exchanges (DEX) here, although they are a solution. The KuCoin platform will allow you to buy BNBwithout imposing KYC on you. It is important to note that if anonymity is one of the fundamental principles of freedom and therefore of financial freedom, regulation is not a bad thing. On the contrary, it prepares for a “crypto friendly” future, which is important for holders of Binance Coin or other cryptocurrencies.

Where to store your BNB after purchase ?

The first solution is to leave your BNB in ​​your wallet on the exchange on which you bought them. Binance is not new, so you can consider your tokens to be safe on the platform. It is still important to note that you do not hold the private key of this kind of wallet.

As a result, your cryptocurrencies do not really belong to you. The exchange can very well be hacked, for example, or leave with the cash register. In the event of a hack, however, Binance has an emergency fund to reimburse its customers, which to date exceeds one billion dollars. A kind of insurance, therefore, which allows its users to rest easy.

The second possibility is to move yourBNB in ​​a wallet that belongs to you after purchase , ie only you hold its private key and its “seed phrase”. There are several types of “non-custodial” wallets that will allow you to store your Binance Coin (BNB). You can choose a “hot wallet” like Metamask or Trust Wallet which are connected wallets or a “cold wallet” which is not like Ledger or Trezor for example which are called “hardware wallets”.

HOW TO SECURE YOUR BNB AFTER PURCHASE?

If your BNBs are on an exchange, the best way to secure them is to secure your account . To do this, it is very important to activate two-factor authentication (2FA). This process consists of asking you for a code, generated randomly for each action, in addition to your password. Thus, if a malicious individual succeeds in finding your password, he will still not be able to connect to your account. There are several types of two-factor authentication such as sending email, SMS or using applications like Google Authenticator .

If your Binance Coin / Build and Build (BNB) are on a non-custodial wallet , however , you can consider them safe. They cannot simply be used with an account on an exchange platform. Indeed, you are the holder of the private key and the “seed phrase” (a sequence of words associated with your account) and without that, it is impossible to interact with your tokens. Be careful though, if you lose this sentence, your BNB will be lost forever.

Another way to add a bulwark to your wallet is the “multisig”. This method consists of several people holding a certain number of words in the “seed phrase”. So if a thief got their hands on your wallet, they would then have to find each person to put all the words in the sentence together and put them back in order. We are talking about an almost impossible mission here.

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SAKHRI Mohamed
SAKHRI Mohamed

The blog of a computer enthusiast who shares news, tutorials, tips, online tools and software for Windows, macOS, Linux, Web designer and Video games.

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