BNB (BNB)

What is BNB and why do people use it?

BNB came onto the scene in 2017, issued by Binance during their first token sale, initially as an ERC-20 token running on Ethereum. Back then, it went by Binance Coin. When Binance developed a blockchain of its own and transferred the token over, it changed, that’s when the name switched to simply BNB and it became the primary token of BNB Chain.

BNB serves two main purposes. First, on Binance itself, holders sometimes get discounts on trading fees and access to select token launches or promotions, though the details change and you’ll need to read the current terms directly on the Binance platform. Second, BNB now plays a key part in the BNB Chain ecosystem. It’s the coin you need to pay transaction costs, like ETH is on Ethereum. So, whether you’re swapping on a decentralized exchange, minting an NFT, or sending tokens, you’ll use a small amount of BNB for each transaction.

Because of those network fees, even if you never interact with the Binance exchange, you might still need BNB. Say you want to transfer a stablecoin on BNB Chain or use any application there: you’ll need to keep some BNB in your wallet or your transaction just won’t go through.

How BNB Chain and BNB fit together

BNB Chain operates as its own network and isn’t a sidechain or add-on to Ethereum. Its main branch, BNB Smart Chain, was launched in 2020 and is compatible with the Ethereum Virtual Machine, meaning developers can reuse much of the Ethereum codebase, and wallets such as MetaMask will work seamlessly after you add the network. Its token standard is BEP-20, which lines up with Ethereum’s ERC-20 profile. There’s more detail on that in our ERC-20, TRC-20 and BEP-20 tokens guide.

This network doesn’t rely on mining. Instead, block production and validation are handled by a limited group of validators who must lock up BNB as collateral. The consensus mechanism is called Proof of Staked Authority, and it’s structured to provide quick transactions and modest fees. The tradeoff is that fewer parties actually validate the chain compared to Bitcoin or Ethereum, which is something some users see as a negative.

The supply of BNB doesn’t follow Bitcoin’s hard cap formula. At launch, 200 million BNB existed, and Binance has committed to burning coins on a set schedule until only around 100 million are left. The number burned over time depends on both network activity and the current price, so it’s not cut and dried. A reduction in supply only means something if demand holds up. One factor alone won’t decide the price.

What affects the BNB price?

BNB’s price moves with the market, like most major digital assets. When the wider crypto market spikes or drops, you’ll often find BNB follows that tide. Over the last twelve months, the coin shifted by -36.97%, and if you look at the past 30 days it moved -7.95%. In that time, BNB’s price hit a low of 545.86 USD and reached a high of 1,107.54 USD, which shows that even older, well-known coins can swing widely.

But the market isn’t the only factor. BNB’s fate is closely intertwined with Binance itself, far more than most coins rely on a single company. So developments around Binance, like regulatory investigations or changes in trade volume, can cast a long shadow over BNB’s price. Activity on the BNB Chain also makes a difference: if apps are busy and user numbers climb, demand for BNB rises as people need it to pay transaction charges. The recurring coin burns draw a lot of attention too, especially when scheduled events are coming up.

If you’re about to make a trade, glance at the live price at the top of this page. And don’t be surprised if each platform lists a slightly different rate, minor price gaps are entirely usual, and those differences can stretch when trading is hectic.

Steps to buy BNB and actual costs involved

To get BNB, use a crypto exchange, fund your account by bank transfer, card, or another digital asset. For most people, depositing your local currency (like euros, dollars, or pounds) and placing a market order is the most direct path. Or, if you want to set your purchase price, a limit order lets you do that. Not all exchanges offer BNB, and availability changes by region, so be sure to double-check BNB’s listing on the exchange before you bother registering. Among the sites we cover, you’ll often find BNB on Kraken, Coinbase, Bybit, and Bitvavo.

What you pay isn’t just the headline price. Actual costs can stack up in a few places, and you’ll find a breakdown in our exchange fees guide:

• Trading fee. Usually charged as a percentage. Fees might be lower if you use a more advanced interface over the quick-buy button.
• Spread. This is the difference between buy and sell prices. It’s sometimes hidden in the quoted price, even when the platform says there’s no commission.
• Funding and withdrawal costs. Using a card usually means a higher fee compared to a regular bank transfer. Also, moving BNB into your private wallet requires you to pay a network fee.

If one person buys 500 euros worth of BNB by card on a basic buy page, while another uses a bank transfer and a limit order, the final cost can diverge quite a bit for the same amount. These fees may look small per trade, but if you trade frequently, they add up. That’s why the table above ranks providers by the total cost, not just their advertised rates.

Tips for keeping BNB secure

After you buy BNB, the coins usually stay in the exchange account by default. That means the platform holds the private keys, and your claim is with them, this setup works if you trade often or don’t keep much on hand. For longer-term holding, many choose a wallet where only they control the keys. You can find an overview of the differences in our article about custodial and non-custodial wallets.

When you transfer BNB out, double-check the blockchain network. BNB is on multiple networks, including BNB Smart Chain (BEP-20), the earlier BNB Beacon Chain, and even has wrapped tokens compatible with Ethereum. Wallet addresses can be identical across networks, so always make sure you’re picking the correct chain on both ends. Our wrong network transfer guide shows you how to prevent mistakes, and what to do if something goes wrong. It might be worth sending a small test first to confirm it all works. That small step greatly limits the risk.

Store your recovery phrase offline, written on paper, away from prying eyes. Never enter it into a website, and don’t trust anyone, no genuine support will ask you for those words.

Potential pitfalls and tax rules

BNB’s value may fall sharply without warning, as is true for every crypto asset. There’s also specific risk tied to BNB: because its future is deeply linked to Binance, any trouble with the platform or its relationship with regulators could hit BNB harder than, for example, Bitcoin. Dividing your holdings and investing only what you can weather if the price slumps are sensible habits, but this isn’t personal investment advice.

Fraud comes in many forms. Fake BNB giveaways, counterfeit wallet apps, and tokens masquerading as part of the BNB brand show up often. Always verify addresses and use only official app stores for downloads.

On tax, the answer isn’t the same everywhere. Many authorities treat crypto more as a property or asset instead of currency. Selling your BNB, swapping it for another coin, or spending it can create tax obligations where you live, while simply buying and holding usually does not. Log dates, values, and counterparties, and consult a tax expert in your region about your circumstances. If you want to know how our site sources and displays price data, have a look at How we compare.