How to Buy Bancor (BNT) in 3 Simple Steps
Bancor makes it quick and easy to exchange tokens, without any need to sign up. Users also earn by staking their tokens in Bancor’s pools. At the heart of the protocol is the Bancor Network Token (BNT). Keep reading to find out how to buy BNT and what Bancor has to offer.
3 Steps to Buy Bancor
1. Choose a broker or exchange
Signing up with a broker or exchange is the necessary first step towards buying BNT. Different platforms offer different features, so if you want a specific feature, like a demo account or a derivatives trading account, check for it before signing up. See the next section on platforms or sign up with our top choice now.
2. Create and fund your account
Fill in the registration form with your name and contact information to create an account. You may also have to complete the KYC process by providing a photo ID before your account can be verified. Then you can deposit funds into your account by choosing one of the payment options available in your country.
3. Buy Bancor
If you just deposited British pounds, the next stage will be to search your platform for the BNT/GBP trading pair and fill in a buy order with how much you want and the type of order. A market order will execute immediately at the current price, while a limit order will execute in the future once BNT reaches your chosen price.
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Where to Buy Bancor: Compare the Top Platforms
There are plenty of places where you can buy BNT, but if the security of your funds is important to you, it is wise to select a reputable and regulated platform. To help you get started, we’ve shortlisted the best platforms that offer BNT below.
What Is Bancor?
Bancor is a decentralised finance (DeFi) protocol where people can use their tokens to trade and earn returns. The decentralised exchange (DEX) lets users make fast and secure token swaps, and unlike with centralised exchanges (CEXs), there is no need to register or provide any personal information.
Swaps are facilitated through pools of tokens and users who stake their tokens in these liquidity pools earn fees and rewards. The network currently runs on Ethereum but it is designed to be interoperable with other blockchains.
BNT is the network’s utility token and is paired with every other asset in the liquidity pools. This vastly reduces the number of pools required as each token doesn’t need to be paired with every other token. Instead, a token is swapped for BNT, which can then be swapped for any other token, ensuring there is plenty of liquidity for trades.
Ways to Invest in Bancor
Investors often have different levels of experience and goals, which affect whether they choose to buy for the short term or the long term. BNT can lend itself to both options and we’ll look at each in more detail below.
Buy and hold Bancor
Buying and holding BNT is as simple as it sounds. The benefit of this strategy is that there is no need to spend hours monitoring and analysing the market as you have the potential to make a profit with minimal commitment in terms of time and effort.
Another advantage is that while you are holding your BNT, you can stake it in Bancor’s liquidity pools to generate a passive income through fees and rewards.
Best Bancor wallets
Taking custody of your tokens yourself means you don’t have to rely on a centralised service for access and can provide some extra security. This is why many long-term holders choose to set up a private wallet.
The most secure type is a hardware wallet such as Trezor, BitBox, or Ledger, though they can be a bit technical and expensive. Software wallets provide a free and easy-to-use alternative that can be downloaded to your desktop or mobile.
The price of BNT can be fairly volatile, like the rest of the crypto market. This is something traders can benefit from by buying and selling tokens much more frequently to generate returns more often. Trading requires more time and skill, however.
As traders need to access their tokens on an exchange more often, it can be less convenient to move them to a private wallet. Web wallets are less secure but are free and may be better suited to traders’ purposes.
Should I Buy Bancor Now?
This is up to you, but it helps to be well informed before making any investment decisions. The supply of BNT is elastic as new tokens can be emitted if the fees from swaps aren’t enough to compensate liquidity providers and protect them against impermanent loss.
Growth in the supply of BNT could put downward pressure on the token’s price. However, as this growth is paid to liquidity providers, it incentivises more people to buy BNT and stake it in the pools, thereby reducing the supply available on the market, which could ultimately prove positive for BNT price.
BNT could therefore become more valuable as the number of Bancor users and liquidity providers increases. Bancor was an early entrant to the DeFi space, which has already seen it attract a strong following. The impermanent loss protection Bancor offers and its interoperability with other blockchains could see the project achieve even greater success in the future.
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Frequently Asked Questions
Impermanent loss happens when the tokens you deposit in a liquidity pool change in price, so that when you withdraw them, their value is less than it would have been if you had just held them.
The protocol earns fees by co-investing BNT in the Bancor pools as well as liquidity providers. If these fees aren’t enough to cover the cost of impermanent loss, Bancor emits more BNT to pay liquidity providers.
BancorX is a cross-chain bridge that enables swaps to be made across different blockchains with BNT as the link. Currently, BancorX provides interoperability between Ethereum and EOS but it can be extended to support other blockchains.
You will need to connect a Web 3.0 wallet such as MetaMask, then you can click “Earn”, press the plus button next to your chosen pool, and enter how much you want to stake.
Yes. You can click “Create Pool” above the pools in the Earn section. Then choose the token, set the fee, and hit the “Create a Pool” button.