Buy Binance Coin (BNB) - how to invest in Binance Coin in Malaysia

Binance Coin is leading the way on many fronts. In addition to entering the market, they have also expanded protocol development by introducing their Binance coin, BNB Binance Coin, in technologically faraway 2017.

What is a Binance Coin?

Binance Coin (BNB) is a utility token used to trade cryptocurrencies, a development protocol for creating decentralised applications and issuing tokens. Binance Coin (BNB) is a "reward" coin that encourages HODL (storing cryptocurrency without selling it) and even selling it. The adoption of BNB is growing at the same rate as the exchange itself.

Binance Coin (Binance Coin) are tokens used on the Binance platform. While they are traded on the market and their value fluctuates, they traditionally represent what you would call any currency such as the euro or bitcoin. Therefore, its use is very flexible, and it is no coincidence that its price continues to rise.

Binance Coin is one of many altcoins, and when it was created, it was based on the ERC-20 standard, using the Ethereum Network and its blockchain. It would help if you kept it in mind because the coin also follows the rules set by the community to regulate the Ethereum blockchain.

How to buy Binance Coin
How to buy Binance Coin

More importantly, this allows Binance Coin to benefit from the stability and security that the Ethereum blockchain and network has created over time. You won't have to worry about your coins being stolen by any attack because they are secure, built on Ethereum.

Zhao Changpeng is the founder of the coin. Member of the Advisory Board of Bitcoin Shop, Inc. Co-founder and CTO of OKCoin. Head of development futures trading at Bloomberg.

In 2017, Zhao Changpeng conducted an ISO of his project, the cryptocurrency exchange Binance. This made it possible to raise the necessary amount for the project - $15 million - in a short period (just 11 days).

As you can see, the gifted programmer earned the trust of significant financiers and quickly achieved results. 

The Binance blockchain

Binance's blockchain is flexible: it creates new tokens to digitise existing assets, send, receive, mint or burn, freeze or unlock tokens.

You can also monitor the DEX market to confirm certain assets' price and market activity and examine transaction history and blocks in the blockchain using the Binance Chain Explorer.

Not to mention, you can also mine other Binance Chain data through the entire node API, develop tools and applications to help users use Binance Chain and Binance DEX, and of course, send and receive BNB tokens.

Binance Chain uses a modified consensus version of BFT's Tendermint. Tendermint was created for Network Space and uses a modular architecture to achieve several goals, including providing networks and even blockchain layers. In addition, it was a platform on which various decentralised applications could be created.

How to invest in Binance Coin
How to invest in Binance Coin

The main goals in designing the Binance blockchain are:

  • No storage of funds: traders retain control over their private keys and their funds.
  • High performance: low latency, high throughput (actual measured throughput) for a large user base and high trading liquidity. Aim for a time of 1 second per block, with one confirmation of finality (guarantee that transactions will not be changed).
  • Budget-friendly: both in commission and liquidity costs.
  • Simple user interface.
  • Fair trading: minimise backtracking as much as possible.
  • Evolving: able to constantly improve technologies, architectures and ideas.

How does BNB work?

It would not be wrong to ask what Binance Coin is for, as it is not a currency. However, as a token used on the Binance platform, it has a particular purpose. Remember that Binance charges a fee for every transaction you make.

How about you stop paying transaction fees? With Binance Coin, you can, because it is used to do so, pay commissions on the Binance exchange.

Instead of paying a $1 commission for every $1,000 you trade (which can add up to a lot of money for active traders), you can use Binance coins to cover the commission. This fact makes Binance coins extremely useful and valuable for traders.

Here's how it works: Binance will reduce trading fees for those who want to use Binance coins while trading for the first five years. And there is a sliding scale commission system, so in the first year, you can get 50% off the commission with Binance Coin.

Binance coin trading conditions
Binance coin trading conditions

The Binance Coin price 

BNB is currently the third-largest cryptocurrency by market capitalisation, with a market capitalisation of $41.53 billion. The historical low of $0.096109 for the coin occurred shortly after its launch on 1 August 2017. The historical high was much later when BNB hit $333 on 20 February. Not bad for those who believed in money.

It is also important to note that the price dynamics of BNB are very different from many others. An altcoin with a similar market capitalisation. First of all, it should be taken into account that continuous money burning (burning, destruction) reduces the supply (in the sense of space availability) of BNB on the market.

These factors are the reason why BNB has been less volatile over the years than other currencies. Also, it has always been in Binance's interest to have a relatively stable local currency to use as a trading pair. However, they have recently launched their versions of fiat stable coins - Binance USD and Binance GBP.

The risks of investing 

Of course, investing in cryptocurrency is a source of profit. However, any investment involves risks that need to be taken into account. So it would help if you were sure to take this step to minimise your risk of loss before you buy Binance Coin. 

1. Risks of investment.

Investing in cryptocurrencies is always a risk. The cryptocurrency market is decentralised and therefore has a very high level of volatility: fluctuations of different coins can range from 1-2% to 100-300% over a short time. In addition, cryptocurrency is highly demand-driven. If significant market players buy certain coins over a while, it moves the market in one direction. Thus, volatility and speculation are the main risks of the cryptocurrency market.

2. Misinformation.

Be careful of false information spread online by bots or advertisers. These projects promise high profits in the form of dividends but are often just pyramids and exist for a short time, bringing profits only to their owners. So always choose reliable brokers.

3. Security issues. 

Cryptocurrency investments are not like stocks and bonds, and the security situation is one of their drawbacks. New investors are often surprised to learn that their assets could disappear if hackers gain access to their accounts and, unlike other investments, there is usually no way to get their money back. As a result, some cryptocurrency investors prefer to keep their coins in cold wallets, insulating them from internet access and the risks involved.

There are many more nuances to investing in cryptocurrencies, and the challenge for the investor is to consider as many risks as possible, weighing them against the potential rewards.

Information about Binance Coin on the trading platform
Information about Binance Coin on the trading platform

The advantages and disadvantages of investing in cryptocurrency 

Whether you're new to the world of investing or already a seasoned investor, you may be wondering if there's a place for cryptocurrency in your portfolio. 

Given the staggering rise in the value of bitcoins and other cryptocurrencies, it's easy to see why there's so much interest in these forms of investment. Even so, it's worth proceeding with caution. Cryptocurrency may have a place in your investment portfolio, but only after you've assessed the significant benefits and risks of the instrument.

So, if you want to buy BNB cryptocurrency, you need to know the risks and the benefits. This is an equally important point so that your expectations are not deceived. 

Advantages:

1. High returns.

The value of cryptocurrencies fluctuates constantly and often. The difference is hundreds of per cent over months or even weeks. 

2. The active development of the cryptocurrency market. 

The crypto market is developing faster than any other financial market, and today it has a total capitalisation of more than USD 1,100,000,000. Of course, 62% of this volume is the capitalisation of Bitcoin, but other projects are also showing growth, which is mainly due to the increase in the value of BTC coins.

3. Flexibility of use. 

Compared to stocks, bonds, mutual funds and precious metals, cryptocurrencies are much more flexible to use. BTC and ETH coins are more than just investment assets. They are a form of virtual money. More and more shops, restaurants, banks already accept cryptocurrency payments, and more acceptance of digital money as a payment instrument is only expected. This provides greater flexibility and freedom for the investor, including turning their assets into goods and services at the click of a mouse.

If you want to buy Binance Coin in Malaysia, it is a great chance to invest.

Binance Coin trading platform
Binance Coin trading platform

What a newcomer should know before investing in cryptocurrencies

Many people are interested in cryptocurrencies mainly in terms of investment and the opportunity to make "easy money". But investing in digital currencies has a lot more to lose than in other markets. 

If you're starting to look at cryptocurrencies as an investment asset, you should know the critical things about this market:

  • The price of most cryptocurrencies depends mainly on demand for bitcoins because of Bitcoin's dominance (62% of the market) among other blockchain projects. Ethereum, for example, is only 16% of the total market, and XRP is 1.5%. Bitcoin has had even greater dominance in the past, having only twice fallen below 50% - in mid-2017 and early 2018.
  • Investing in cryptocurrencies comes with a high risk that an investor must consider. Exchange rates fluctuate from hundreds to hundreds of per cent over several months. For example, between October 2020 and February 2021, the price of Bitcoin rose by over 340%.
  • To invest in crypto, you need an investment plan. First, you need to be clear about how quickly you want to make a profit, how much you are willing to invest and which asset to use.

The most important rule for a beginning investor is to invest precisely how much you are prepared to lose if the investment project fails and do your research on the cryptocurrency market. 

How to invest in Binance Coin in Malaysia? 

If you have a question: “How to invest in Binance Coin in Malaysia?” you should have a solid grasp on your desire to do that and find a good broker. 

How to register
How to register

Registering

The next and equally important step is to register on the platform. Registration is a quick process. First, you will enter some personal information so that you can be identified. 

How to open a demo or a real  account
How to open a demo or a real account

Demo account

A Demo Account is a great way to start as a new trader - it gives you the chance to experiment without losing money. All beginners need the experience to be successful in trading. So a demo account is what every beginner is looking for. 

A real account 

You've gained experience and decided it's time to go for it. Then make a minimum deposit and start real trading. 

And we encourage you to improve and stay ahead! Good Luck!

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