How To Buy Bancor (BNT)?

A common question you often see on social media from crypto beginners is “Where can I buy Bancor?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Bancor on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.

Step 1: Create an account on an exchange that supports Bancor (BNT)

First, you will need to open an account on a cryptocurrency exchange that supports Bancor (BNT).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Bancor (BNT) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Bancor (BNT)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Bancor (BNT) or Bancor (BNT) trading pairs. Look for the section that will allow you to buy Bancor (BNT), and enter the amount of the cryptocurrency that you want to spend for Bancor (BNT) or the amount of fiat currency that you want to spend towards buying Bancor (BNT). The exchange will then calculate the equivalent amount of Bancor (BNT) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Bancor (BNT) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is Bancor (BNT)?

Bancor is a blockchain protocol that allows users to convert different virtual currency tokens directly and instantly instead of exchanging them on cryptocurrency exchanges.

According to the Bancor website, “Bancor is an on-chain liquidity protocol that enables automated, decentralized exchange on Ethereum and across blockchains.” The protocol was initially developed in Israel in 2017 by Eyal Hertzog, Galia Benartzi, and Guy Benartzi. Their whitepaper (dated March 18, 2018) states Bancor, “enables automatic price determination and an autonomous liquidity mechanism for tokens on smart contract blockchains.”

The name Bancor was chosen as an homage to John Maynard Keynes who coined “Bancor” as the name for a supra-national reserve currency he proposed at the Bretton Woods conference in 1944.

How does Bancor work?

Many small crypto coins are illiquid given their market cap and whether or not they are listed on an exchange. The transaction costs can also be higher than the costs of the most liquid cryptocurrencies, like Bitcoin and Ethereum.

For traders who want to deal in small- or micro-cap coins, Bancor’s smart token and smart contract technology, which are self-executing contracts with deal terms between transacting parties written into lines of code, allows these kinds of coins to be bought and sold with minimal friction and fees.

A standard cryptocurrency transaction occurring on a cryptocurrency exchange, whether a centralized exchange or a decentralized exchange involves the transfer of tokens between two parties: a buyer and a seller with the exchange acting as a market maker.

What is the BNT token?

Bancor’s purpose is to remove the middleman by creating a virtual reserve currency, which they call Bancor Network Token (BNT), and an automatic exchange mechanism where prices and trading volumes are controlled automatically through the protocol. Bancor’s native reserve currency token, BNT, is the default reserve currency for all smart tokens created on the Bancor network. One of the promises of BNT’s ICO was that investors in the coin would gain interest on the transaction fees as other crypto coins are converted into and out of BNT.

Bancor’s protocol converts between different ERC-20 compatible tokens. Each smart token is linked to smart contracts that hold reserves of other ERC-20 tokens. The tokens are converted internally based on these reserves and depending upon the volume of user requests.

Essentially, smart tokens can be thought of as coins that hold the monetary value of other compatible virtual coins. It is the same in principle to a central bank that holds foreign currency reserves and converts between them as required. The Bancor protocol supports all virtual currency tokens that are compatible with the ERC-20 format. Any smart token created on the Bancor network is also ERC-20 compatible, and therefore compatible with other tokens on the network.

Bancor development updates in 2023

Bancor, a trailblazer in the blockchain and DeFi space, has continued to evolve and expand its features and functionality in 2023. Here’s a detailed look at the key developments and updates:

• Governance Token Proposal: In 2023, there was a significant proposal for BNT to become an official governance token in the Bancor network. This development highlights a move towards enhanced decentralized governance, giving BNT holders a more substantial role in the decision-making processes within the network. The proposal’s discussion and voting process engaged the community, reflecting Bancor’s commitment to a decentralized and community-driven approach​​.

• Network Expansion and Supported Projects: Bancor has been growing its network, providing decentralized liquidity for various tokens. As part of its expansion, the Bancor Network supports a wide array of projects, showcasing its versatility and commitment to fostering a diverse DeFi ecosystem. This expansion not only increases Bancor’s utility but also attracts a broader user base to its platform​​.

• Token Definition Formalization: Bancor has undertaken efforts to formalize the language and documentation around its protocol and network. This involves providing precise definitions for network-relevant terms such as Array token, Liquid token, Proxy token, and Relay token. Such initiatives are crucial for enhancing user understanding and ensuring clarity in the network’s functionality​​.

• Updated Whitepaper Release: A new whitepaper was released, laying out a clearer vision for Bancor’s future. This document is essential for both existing and potential users, as it offers detailed insights into the project’s direction, objectives, and technological advancements​​.

• Token Burning Proposal: In 2023, there was a proposal to burn 1 million BNT tokens. This move was aimed at supporting BNT’s price and could lead to more such ‘burn events’ if it has the intended bullish effect on the token’s price. Token burning is a common strategy in the crypto space to manage token supply and can positively influence the token’s value​​.

• Innovative Automated Market Maker (AMM) System: Bancor continues to promote its AMM service, encouraging users to deposit assets into pools. Each pool contains a reserve of BNT and a pair of tokens, facilitating seamless token trading and exchange. Bancor’s unique approach allows users to deposit a single token into a pool, differing from other AMMs that require token pairs. This user-friendly feature enhances the platform’s appeal and accessibility​​.

• Oracle for Price Accuracy: Bancor V2 introduced an oracle system to ensure liquidity providers receive accurate pricing for their locked tokens. This system allows Bancor’s pools to automatically adjust the proportion of tokens relative to their pricing, ensuring fairness and reliability in transactions​​.

• Tokenomics and Cross-Blockchain Functionality: BNT is pivotal in enabling trading between pools on Bancor and is crucial for Bancor’s functionality across multiple blockchains. With Bancor operating on both Ethereum and EOS platforms, BNT facilitates value exchange between currencies on these chains, underlining its importance in the Bancor ecosystem​​.

These updates and developments are indicative of Bancor’s ongoing efforts to innovate and improve its platform, ensuring it remains a key player in the ever-evolving DeFi landscape.

Official website: https://bancor.network/

Best cryptocurrency wallet for Bancor (BNT)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Bancor (BNT)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).