How to Buy Bancor Network Token

How to Buy Bancor Network Token

Bancor is a protocol that enables automated, decentralized exchanges on Ethereum and across blockchains. Bancor offers an innovative way to exchange currencies and tokens for others without any centralized cryptocurrency trading platform, while network participants may add funds to liquidity pools in exchange for incentives.  Operating as an automated market maker, Bancor allows easy peer-to-contract trades within a single transaction on the basis of smart contracts.

Read on to learn everything you need to know about the Bancor Network,  Bancor tokens, and how to buy Bancor Network Token/BNT.

Let’s dive in!

History of Bancor Network Token (BNT) 

Galia and Guy Benartzi co-founded the Bancor project. The Bancor Network is overseen by the Bancor Foundation, which is based in Zug, Switzerland. 

The project raised $153 million in Ethereum tokens in a token sale in 2017. Half of the tokens sold were distributed to investors, and the rest were distributed to the development team for grants and operating budget.

In 2020, Bancor v2, the second version of the protocol, was launched. It included improvements such as impermanent loss insurance and single-sided exposure.  

On January 1, 2020, Bancor added dramatically to its liquidity pool by airdropping all of its Ethereum Reserve, which totaled 10% of the BNT market cap at the time, in the form of ETHBNT Bancor Pool Tokens. This resulted in the Bancor network going from the liquidity of just under $4 million on January 1, 2020, to over $17 million as of mid-June 2020.

The name Bancor was inspired by the French “Banque or” (bank gold) and stemmed from a proposed supra-national currency idea from the mid-twentieth century. 

Bancor is known for a unique venture in Kenya in June 2018.  The project aimed at the enablement of community currencies that were based on the blockchain. These new currencies operated in the working environment of an open-source platform known as the POA network. The POA works via the verification of transactions by a range of US-based notary publics, who earn for their efforts. The new approach proved sustainable, as Bancor used it to facilitate a reduced transaction cost in cases involving community currencies.

All of the community-currency trade is recorded by each node or participant of the network for administrative purposes. The records are then collated and forwarded to the main POA network, resulting in reduced transfer fees.

To date, Bancor has almost $2 billion in crypto trades.

What Is Bancor Network Token (BNT)

Bancor created a virtual reserve currency called Bancor Network Token (BNT), an automatic exchange mechanism where prices and trading volumes are controlled automatically through the protocol.

BNT is the default reserve currency for all smart tokens created on the Bancor network. The BNT token serves multiple purposes in this system: an incentive mechanism, an admission token, an intermediary currency, and a governance token. 

Bancor Network Token is an Ethereum token. Bancor coin mining is unavailable, as BNT initially had a strict limit of coins distributed during the ICO. BNT tokens provide liquidity, enabling the automation of decentralized Ethereum-based networks.

Smart contracts make it possible to pool liquidity, facilitating peer-to-contract trades that fall within one transaction.

If you own Bancor Network Tokens, you can always stake the crypto in automated markets to contribute to the liquidity pool and earn interest. In addition, users have the right to vote on the operating protocol, the Bancor DAO. 

What makes Bancor Network different from other similar AMM networks in the DeFi market is connecting to other networks, like Ethereum and EOS. Bancor users can now connect to these two networks to add more liquidity for executing trades within the Bancor software.

How Does the Bancor Network Token (BNT) Work

One of the most significant benefits of Bancor and the BNT token is bringing liquidity to cryptocurrency markets. Through the Bancor Protocol, any token can get instant liquidity. This is incredibly important when it comes to facilitating the adoption of decentralized applications.

 The Bancor platform provides a much-needed service of increasing liquidity for any token and of creating a platform where any token can be exchanged without the need for a counterparty.

Bancor uses smart contracts to create Smart Token, which is used to convert ERC-20 tokens within the Bancor system. The smart contract maintains a reserve of ERC20 tokens, and a particular ERC20 token can be drawn on these reserves. In addition, it can also be converted into another token.

Bancor Network operates via the AMM process so that whenever a trade is executed on the platform, the system converts the cryptocurrency to BNT. Then liquidity providers who deposit funds to a pool in the system can collect rewards as a percentage of the trading fees paid by traders on the network.

The conversion of cryptocurrencies is made through cross-chain operations while users remain in control of their private keys. The cross-chain structure allows Bancor to connect users to other platforms, like Ethereum and EOS, and become a multi-platform liquidity solution.

BNT is used as an intermediary for exchanging other tokens and cryptocurrencies, supporting the AMM system.  Bancor allows users to add a single token to a liquidity pool instead of adding pairs.

The system uses another token, ETHBNT, introduced in 2020. The token represents shares of BNT and ETH in Bancor/Ethereum pools.

How to Buy Bancor Network Token 

Follow our step-by-step guide to buying BNT from popular crypto exchanges:

Step 1: Create an online account. You don’t have to use Bancor’s exchange platform to purchase BNT. Instead, you can choose a cryptocurrency exchange that best suits your needs. Many exchanges like Coinbase, Binance, Bittrex, and CoinStats have support for Bancor.  You can also buy Bancor directly with cash at Binance.

You should also note that most crypto exchanges require personal information such as your full name, phone number, proof of ID, social security number, and email address to register. Bancor will only require a connection to an Ethereum wallet. You will also be required to undergo a standard KYC procedure.

Step 2: Acquire a Wallet. A cryptocurrency wallet is a virtual space where you can safely store your valuable crypto holdings. Software wallets like Coinbase Wallet and Metamask are good choices for many investors; however, consider acquiring a hardware wallet for safety. A Ledger wallet, like Ledger Nano S or X, offers you long-term secure storage and is highly recommended as a secure wallet by professionals.  If you would like to send your BNT to an external address, this can be done at any time.

Step 3: Fund your account. Upon signing up at the exchange, you should be shown easy-to-follow instructions to buy BNT with fiat currency from your bank account or credit or debit card. Once verified, you can deposit fiat currencies using the payment method that best suits you – Bank transfer, credit or debit card, and wire transfer are all widely accepted. Some exchanges also accept alternative funding methods such as Paypal, Apple Pay, Skrill, or Sofort by Klarna. You can also deposit any supported cryptocurrencies, like Bitcoin, directly into your exchange account and trade Bitcoin for BNT. 

Step 4: Buy Bancor Network Tokens. You are now all set to exchange your funds for BNT. The buying process is as easy as entering the amount you want to purchase and clicking “buy” on most exchanges. 

You can choose between a market and a limit order. When you place a limit order, you set the price you want to buy BNT at, and if you’re going to place a market order, you can instantly buy BNT at its market price.

To sell Bancor BNT, simply reverse the buying process described above. You can use all the tools you need for selling BNT on any of the exchanges listed above or the Bancor application itself. You will likely need to trade your BNT into a USD coin like USDT. Look for a “Sell” button in your account wallet and sell BNT for Dollars, then initiate a transfer to your bank account. 

How to Buy Bancor Network Tokens (BNT) on CoinStats

CoinStats is one of the best crypto platforms around. It allows you to check current market prices, along with in-depth information on several of the biggest and fastest-growing cryptocurrencies. On CoinStats, you can see the exchange rate for BNT to Bitcoin, analyze and purchase BNT at the Current Price, and much more.

CoinStats is a cryptocurrency research and portfolio tracker app that provides valuable information on cryptocurrency news and investment advice to help investors make better decisions.

To buy Bancor Network token BNT on CoinState, all you have to do is create an account on the platform. This is a simple, straightforward process. Once your account has been created, go to the search section and enter BNT. From here, you can easily make trades and swap tokens.

Guides and educational blog posts such as BNT price, how-to-buy guides like how to buy cosmos on Coinstats, and much more are highly recommended for investors.

Why Should You Buy Bancor Network Tokens

Here are key advantages to using BNT:

1) Network Effects: Staking on Bancor directly increases demand for BNT.

2) Staking Rewards: Pending a community vote, Bancor Protocol may activate BNT Staking Rewards. Users who stake their tokens in Bancor pools will receive staking rewards.

3) Governance: Following the launch of the BancorDAO, BNT will be used to vote on key attributes of the Bancor Protocol.

4) Cross-Chain Conversions: BNT in Bancor pools allows Bancor to process token trades across blockchains efficiently. BNT mints and destroys itself across chains to process these cross-chain trades.

Conclusion

Bancor provides a superior solution to that offered by cryptocurrency exchanges. With Bancor, it is possible to trade between cryptocurrencies and even across chains without even needing another party to that trade. All of this is achieved quickly and at a lower cost compared to alternative solutions. 

The team also provides a non-custodial wallet for users to seamlessly connect to EOS and Ethereum and trade with over 500 tokens from any device. The newest update to the online platform aims to create a powerful and easy-to-use platform. The Bancor Protocol also allows developers to build a seamless exchange application between several tokens.

However, investing in cryptocurrencies involves significant risks due to their volatility. Consider your own circumstances and obtain your own advice before relying on this information. You should also carry out your own research, including the legal status and relevant regulatory requirements, and consult the relevant regulators’ websites before making any decision.

This content and any information contained therein is being provided to you for informational purposes only and does not constitute investment advice, financial advice, trading advice, or any other sort of advice.