Bancor (BNT) is a decentralized trading protocol that facilitates trading and earning interest through staking. The network has a native protocol called BNT.
Bancor was the first defi protocol that provided a marketplace with no entry barrier. In this guide, we look at ways to buy BNT tokens, the best platforms to use, and tips to consider before purchasing.
Best Brokers to Buy BNT in 2023
There are different possible ways you could buy BNT tokens. However, getting the best deal is a daunting task that will require hours of research and due diligence.
We’ve put together a list of the best providers below for you to get started quickly.
Crypto brokers and exchanges are the primary avenues for acquiring BNT tokens.
eToro and Binance are the best platforms to buy BNT.
Before purchasing BNT, consider factors like taxes, fees, regulations, and volatility.
Crypto platforms like eToro provide various deposit options like bank transfers, and credit and debit cards.
Storage of your BNT tokens is critical. You have the option of using hot or cold wallets.
What Is the Difference Between Owning BNT vs a Derivative Product
Many BNT trading pairs exist including, BNT/USD, BNT/BTC, and BNT/ETH, that will help you buy BNT.
To purchase BNT, you’ll need to use a crypto exchange or a broker. Some providers will allow you to exchange fiat currencies for BNT tokens, while others only exchange BNT for cryptos.
Unlike Bitcoin and Ethereum, there are no financial derivative products for BNT tokens. This is because BNT is an altcoin with a small market cap. Crypto brokers, therefore, don’t offer Contracts for differences or futures for BNT. All platforms will require you to buy BNT as an underlying asset.
Different Ways to Buy BNT
This section will explain the different ways to buy BNT and give examples of crypto providers you can actually use.
Brokers: Like stockbrokers, crypto brokers will allow you to purchase cryptocurrency using fiat currencies. They typically provide cheaper fees, although they offer a limited number of cryptocurrencies. eToro is a perfect example of a broker where you can purchase BNT tokens easily.
Centralized Exchanges: These are custodial platforms to buy and sell cryptocurrencies. There are fiat to crypto exchanges that accept fiat like USD and EUR in exchange for cryptos. Others are designed to only accept cryptos like Bitcoin and Tether. Examples of exchanges that offer BNT include Binance and Coinbase.
Decentralized Exchanges: These are non-custodial exchanges, with no central authority governing them. Good examples include Bancor Network and Uniswap(V2).
Peer-to-peer (P2P): BNT tokens are not available on the common P2P marketplaces such as Paxful. However, it’s possible to find people willing to sell BNT tokens. You can check with your local BNT meetup.
Where to Buy BNT
We’ve explored the different ways to purchase BNT tokens. Let’s now analyze specific examples of platforms that will provide you value for money.
This is a crypto broker that is renowned for its social trading feature. You’ll have to deposit fiat currency into your account in exchange for BNT tokens.
Binance is the world-leading crypto exchange. It boasts over 500 cryptos and an array of payment options.
How to Buy BNT Online?
Below are the steps involved in buying BNT from eToro:
Step 1: Open an Account
Step 2: Verify Your Account
Step 3: Fund Your Account
Step 4: Enter the Number of BNT Tokens You Wish to Buy
Step 5: Execute
How to Trade BNT?
There are two ways you can trade crypto assets. Buying and selling is the primary option available on all exchanges and brokers. The other option is trading for the crypto asset without owning it. This is made possible by derivative financial products like CFDs.
Unlike Bitcoin and Ethereum, there are no platforms offering trading options like CFDs and futures for BNT tokens. However, you can easily do spot trading for BNT tokens on many platforms.
Crypto Investment Strategy
Investors can use two principal investment strategies. These depend on crypto trading expertise, experience, and investment amount.
A long-term investment strategy dictates that you buy the BNT tokens and leave them for a substantial amount of time.
Investors HODL if they believe a crypto project will increase in price in the long term. Hodlers do this despite price movements or market sentiments. This strategy has the potential to pay off handsomely.
Short-term strategies dictate that you buy and sell BNT tokens within short periods. This may involve day trading.
The short-term strategy will either involve the investor taking a “long” or “short” position. With the long position, the investor hopes that the price of crypto will increase from a certain point in order to make a profit. Going short involves hoping the prices of a crypto decrease in order to sell them.
How to Store BNT?
There are two primary options for the safe storage of your BNT tokens.
These are wallets that operate online. Ensure to select and download non-custodial platforms to guarantee ownership of your BNT tokens. Hot wallets are further categorized into desktop, web, and mobile wallets. Some common examples include MyEtherwallet, Trustwallet, and Atomic wallet.
These will store your BNT tokens offline. They are more secure but will demand some initial investment. Some popular cold wallets include Trezor and Ledger.
The type of wallet you use will mostly depend on your investment strategy. Those who do short-term trading are likely to use the exchange wallet. Those with a substantial investment are likely to store their tokens in cold wallets.
What Are the Different Ways to Pay for BNT?
There are multiple payment methods at your disposal, depending on the crypto provider you choose. Fiat to crypto platforms will allow you to link your fund's sources to the platform for easy deposits. Crypto to crypto platforms only allow you to deposit other cryptos.:
Here are the leading payment methods popular on mainstream crypto platforms.
This is an easy-to-use means to fund your account. Many crypto platforms provide these transfers across different countries.
Online banking options such as IDEAL/Sofort, Poli, Klarna, and rapid transfer ensure you can comfortably do transfers anywhere in the world. You can use a provider like eToro that provides a variety of instant bank transfer methods.
Visa and Mastercard credit cards are accepted on some platforms. You can connect your credit account and transfer USD, GBP, or EUR. Most deposits are instantaneous. eToro and Coinbase are some of the platforms that accept credit cards.
Visa and Mastercard are readily acceptable across most providers. Debit cardholders can link their debit accounts to the provider and transfer money instantly. eToro also offers the option of purchasing BNT with your debit card.
It's possible to exchange mainstream crypto-like Tether, Ethereum, and Bitcoin for BNT tokens. Binance is a platform that accepts crypto to crypto transfers.
Some popular e-wallets include Paypal, Neteller, and Skrill. These wallets facilitate digital payments. Exchanges will allow you to connect and deposit fiat currencies like USD. eToro accepts Paypal, Skrill, and Neteller.
What to Consider When Buying BNT?
Before buying BNT tokens, you’ll need to do some research and perform due diligence. Here is what you’ll generally need to watch out for.
Different Fees: When purchasing BNT tokens, you’ll have to contend with different types of fees ranging from deposit to withdrawal fees. The charges will mostly vary depending on the payment method and the platform.
Bank transfers are typically cheaper compared to credit cards and e-wallets. You’ll have to consider the fees and find a provider who’ll give you value for money.
Volatility: All crypto is volatile. Volatility is affected by market sentiments, news, and competition. For instance, BNT's all-time low price was $0.1 and its all-time high stood at $23.7.
Consider BNT volatility before purchase. Carry out fundamental analysis before investing.
Regulations and Taxes: Different countries have different laws on cryptos. For instance, regulations in China prohibit the trading of cryptos. Tax laws are also country-specific, with some countries, such as the US, treating crypto as a form of property liable to capital gain taxes.
As an investor, care should be taken to ascertain regulations and tax laws in your jurisdiction. This will help you factor taxes in your expenses when planning your investment strategy.
Investment Strategy: There are two fundamental investment strategies. Some investors will buy and hold for the long term while others adopt the short-term strategy. Before investing, decide whether you’ll hold BNT for the long haul or trade the tokens in the short term.
Competition: There are competing projects that may affect the prices of BNT tokens. Good examples of competing blockchain projects include THORChain and Kyber Network.
Security: Decide the method of storage beforehand. We advise you not to leave your BNT tokens on the exchange wallet if you plan to HODL for the long term. Cold wallets are suitable for substantial investments.
Is It Safe to Buy BNT Online?
It is possible to ensure your investment remains secure by following several standard practices. See some tips below:
Activate 2-Factor Authentication (2FA) for Your Account: Once you sign up for a crypto provider, ensure to activate 2FA. This feature confirms your account log-in by sending you an SMS for the second-level authentication. Some platforms also offer this feature to authorize withdrawals.
Store Your BNT Tokens in a Secure Wallet: Unless you are day trading your BNT tokens, we strongly recommend moving your BNT to a secure wallet. Free external wallets such as Atomic wallets are available. Paid options such as Ledger Nano X offer better security.
Ask for Help on Official Sites Only: When you face any challenges, use the official communication channels to get help. Remember to never give your private keys away.
Pass Only the Necessary KYC: Ensure to fill in the mandatory KYC details only. Leave the optional details to avoid over-exposure of your details.
Use a Secure Network Connection: Avoid accessing your account or wallet over free wifi. Ensure to use a VPN service when using free internet to avoid security breaches to your accounts.
Engage with Only Regulated Crypto Providers: Examples of regulated platforms include eToro, Coinbase, and Binance. Unregulated platforms may steal your investment.
How to Sell BNT?
There are a variety of ways you can sell cryptos. However, many investors desire to turn their crypto investments into fiat currencies.
Here is how you can sell your BNT tokens on eToro:
Step 1: Log in to your account and click on ‘Portfolio’.
Step 2: Select BNT from your crypto-list
Step 3: Execute the trade.
Is It Worth Buying BNT Right Now?
Crypto investment is risky, and prices are highly volatile. This is no different for BNT tokens. The price of BNT has changed significantly over time.
At the moment, you can purchase BNT tokens for $2.82. The all-time high price was recorded at $23. The current price is expected to see minimal change and maybe break above $3 in the short term.
The Bancor network is just about to roll out the Bancor 3 network. The developers and the community reckon that this will solve problems with the network and subsequently push the price of BNT higher.
Currently, eToro provides the best way to buy BNT tokens. You can use a variety of payment methods to deposit fiat currencies. Depending on your trading strategy, you can buy and sell BNT on the platform easily.