Today, Coin98 will show you how to:
- Purchase and store BNB.
- Transfer funds to the Ethereum network by transferring BNB tokens from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on BSC Blockchain.
Let's jump right into BSC Blockchain!
About BSC (BNB Smart Chain)
BNB Smart Chain (BSC) is a blockchain built and strongly related to Binance Exchange - One of the biggest Centralized Exchanges at the moment.
BNB, formerly called Binance Coin, now stands for “Build and Build”. BNB is not only the native coin of both Binance Chain and BNB Smart Chain but also the native token of Binance.
Similar to other blockchains, to participate in DeFi on BNB, you also need the native token of the corresponding chain for a fee, also known as "gas fee" (the fee you need to pay to the network). The gas gwei level on the BSC is currently around $0.04 - $0.06/transaction. So, to make transactions, only 0.05 BNB ($21) can go a long way.
Step 1: Prepare tokens
Since nearly all CEXs currently support BNB, you have complete freedom to choose where to make your BNB purchase(s). The most popular BNB-supported exchanges include Binance, Huobi, Gate.io, KuCoin, and many more.
In the following section, I'll go into greater detail about which exchange you should use to purchase BNB.
Step 2: Prepare your BEP-20 wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEX to store tokens and interact with DeFi. At this time, many different wallets, including the Coin98 Super App, can store BNB coins.
First, you should have an BSC Wallet (or BEP-20 Wallet) to store your BNB, this article will be usefull for you: How to create & use an BEP-20 Wallet
Following these simple steps, you can store BNB and other BEP-20 tokens.
- Step 1: Click on the BNB wallet.
- Step 2: Select "Receive."
- Step 3: Copy the wallet address or scan the QR code to get the address.
Step 3: Transfer tokens from other Blockchains to BSC (BEP-20)
After buying BNB and having a BSC wallet (BEP-20), you can participate in events or skin in the game in the BNB Smart Chain Ecosystem, such as joining lending, yield farming or staking activities on this chain.
However, you should note that there will be multiple token standards for BNB in the market, such as BSC (BEP20), Binance Chain (BC), Heco Chain (HRC-20), and Avalanche C-Chain (ARC-20). You can change the token standard to match the chain you need.
For example, if I have a HRC-20 BNB token and need to convert it to a BEP-20 BNB token, some options are:
- Option 1: Buy BNB Coins from CEXs and transfer them to a BNB Chain-supported wallet.
- Option 2: Convert that token from the Heco Chain blockchain to the BNB blockchain using the Cross-chain Bridge.
To make it easier for you to visualize, I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs& withdraw to a BEP-20 Wallet
When transferring BNB from CEX to decentralized wallets, the benefit is that no gas fees are charged. You don't have to pay to switch networks because CEX exchanges support a wide range of token standards.
To begin, you'll need USDT or USDC stablecoins in order to purchase BNB. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this “How to use Binance'' article.
Step 2: Choose “P2P Trading” in your Binance Homepage.
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you have now to buy USDT.
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.).
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow the Binance instructions to complete the transaction (remember to read the instructions carefully).
Now that you have USDT, you can purchase BNB from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
Step 1: On Binance exchange, use USDT to purchase BNB.
Step 2: Transfer BNB to the BNB wallet by typing in your Coin98 Wallet Address.
Option 2: Use Cross-chain Bridges to transfer tokens to BEP-20 Tokens
Almost all bridges on the market currently support asset transfers to and from the BNB Chain. You are free to select any bridge that makes you feel at ease. I'll suggest a few bridges here:
cBridge introduces cross-chain token bridging experience with deep liquidity for users, highly efficient and easy-to-use liquidity management for both cBridge node operators and Liquidity Providers, and new developer-oriented features such as general message bridging for cases like cross-chain DEX and NFTs.
cBridge currently supports 26 blockchains, ranking 8th in the market with more than $720M in TVL.
Multichain is a fully decentralized cross-chain swap protocol for various tokens with an automated pricing and liquidity system. Additionally, the protocol is powered by Fusion’s Decentralized Control Rights Management (DCRM) technology, boosting Multichain's ability to swap any coins/tokens on any blockchains that uses ECDSA or EdDSA as a signature algorithm.
Multichain now supports more than 40+ different blockchains, allowing users to have multiple choices when transferring assets.
3. Coin98 Super App SpaceGate
The Coin98 Super App currently supports cross-chain bridges with popular blockchains such as Ethereum (ETH & ERC20), Solana (SOL & SPL), Avalanche (C-chain & X-chain), Boba Network, Arbitrum (Ethereum's L2), Optimism, C98 on BNB Chain, and TomoChain.
Step 4: Add tokens to the Coin98 Super App
Because BNB is the native token of the BNB Smart Chain, it will be displayed by default in multi-chain wallets. If you need to add a new token to this multichain wallet, follow these simple steps:
Step 1: On the homepage, select More → Custom Tokens.
Step 2: Fill in the following information:
- Select Blockchain.
- Enter the token's Contract Address.
- Token symbol.
- Token name.
You can check this information on block explorers.
Users only need to select Blockchain and enter the Contract Address of the token they want to add to the wallet. The remaining data will be automatically updated after users enter the correct contract address.
In case the system fails to extract the data, you can manually fill in the remaining data into the required cells.
Select “Create” and you're done.
Step 5: Skin in the game with BNB Chain
After transferring BNB to BSC, you can skin in the game in BNB Smart Chain Ecosystem and earn interests.
Learn more: BSC Ecosystem Overview
Venus Protocol is an algorithmic money market protocol on Binance Smart Chain. The protocol is forked based on Compound and Marker DAO which brings the benefits of both systems into one.
Venus allows users to supply collateral, earn interest on that collateral, borrow against that collateral, and mint on-demand stablecoins.
Farming is a method of providing liquidity for AMMs in order to receive rewards. Farming produces much higher profits than lending and staking, but there is a risk of impermanent loss.
You can also choose Yield Aggregators as they offer different strategies to find the best yields for farming/staking assets. This is one of the most important sectors in DeFi as it helps users gain a massive amount of profit, which is one of the main reasons why anyone would want to participate in DeFi.
Binance Launchpad is Binance's exclusive token "launchpad" to help Blockchain projects raise capital. With the reputation and influence of the Binance exchange and its ecosystem, Binance Launchpad helps increase the project's reach across other crypto-ecosystems.
Binance Launchpad has put its name on the map and gained massive interest in the community. More than helping projects to raise funds, Binance Launchpad supports them by providing advisory services together with its solid user network.
To be listed on Binance Launchpad, projects must go through a verification process and have strict selection criteria, thus ensuring quality and good development potential.
So far, I have shown you how to transfer coins to BNB Chain to skin in the game. Hopefully, after reading this article, you will have a better understanding of the DeFi market and find suitable ways to maximize your profits.