If you’re interested in blockchain projects, you should definitely look into the Bancor Network. Whether you want to buy Bancor Network tokens or you’re simply interested in learning more, this article will provide you with everything you need to know about the Bancor Network.
In fact, this project stands out from the rest of the competition because of its BNT token system. Of course, as is the case with most blockchain projects in the cryptocurrency market, the Bancor Network has had its own fair share of highs and lows, but unlike other projects, it has persevered.
From blockbuster ICO to legal issues to general partnership, there have been plenty of ways through which the Bancor Network has gained traction through the years. Due to this very reason, we believe that it warrants a further in-depth look. So, let’s begin.
What is Bancor network?
Before we launch into the specifics about the Bancor Network, it is essential that you understand why it is different. In order to do so, we must first understand what the Bancor Network is.
As established, the Bancor Network (BNT) is a blockchain protocol. It allows users to convert various types of cryptocurrencies without having to go through currency conversion platforms. Basically, it has created its very own network where you can easily convert cryptocurrencies of your choice with a single click.
What’s more, this can all be done through the Bancor Wallet, and its primary goal is to allow traders with the opportunity to automatically and quickly liquidate cryptocurrencies. It makes cryptocurrency conversion much more manageable by not involving any third-party exchanges.
It aims to keep the network completely decentralized, which has been achieved through the innovative use of BNT tokens- we will explain that in more detail later.
The Bancor Network provides a seamless solution to a problem that many traders face today: cryptocurrency conversion and liquefaction. It aims to solve these problems and make cryptocurrency transactions as easy as possible.
Honestly, it is a great idea, and the execution so far has been entirely satisfactory as well. The Bancor Network is supervised by the Bancor Foundation, located in Switzerland, with its R&D department based in Tel Aviv in Israel.
These locations are important because it provides the company with one foot in the Middle East, where blockchain technology is only just developing as well as in Switzerland, which has become a rising hub for blockchain.
The company was founded in 2016 by Silicon Valley entrepreneurs and has been named after the balancing trade currency envisioned by John Maynard Keynes. It has been very successful so far.
In fact, in 2017, it held the world record for raising the most Ethereum tokens worth over $150 million in a little less than three hours.
What is Bancor Token? Is Bancor an ERC-20?
The Bancor Token, also referred to as Bancor Network Token (BNT token for short), connects different tokens that use the Bancor Network.
It is used as the primary hub token on the Bancor Network and is used when any cryptocurrency is converted into another. The BNT is, in fact, an ERC-20 and runs on Ethereum’s blockchain, so you cannot mine it.
You can, however, use it to exchange, buy or purchase other ERC-20 tokens that are available through Bancor- which, as we have mentioned, is able to make automatic conversions or liquify tokens through its decentralized network- or any other traditional markets.
How does Bancor currency BNT token help the Bancor network?
The BNT token benefits the Bancor Network by acting as the reserve for other small tokens (cryptocurrencies), using the BNT network to provide user-generated smart tokens through exchanges or as decentralized token baskets or wallets for you to use.
The BNT then establishes a network dynamic where, when the demand for any one of the network’s tokens increases in demand against or for the BNT token, this can benefit all the other tokens held in Bancor’s reserves.
In this way, it is not only benefiting you by allowing the price of the token of your choice to increase, but it also helps other users who make use of Bancor’s reserves. In this way, it can create a sort of decentralized network where your actions benefit others as well.
This obviously develops a sense of community. Other than that, if you’re interested in trading in a number of different currencies, the increase in the demand and price of one will actually provide you with a more considerable benefit in both the short and long term.
This obviously helps with making up for losses and aiming for higher profits. In fact, BNT’s ability to provide this feature, combined with its easy, automated crypto-exchange system, gives you a greater say in how your tokens are used.
How do you use Bancor?
By now, we’re sure that you can see the benefits of using Bancor, so you will also want to know how it can be used. For new users, it is recommended that you begin trading by using the Bancor Dapp.
Since Bancor has been integrated with other smaller networks, you can also use any other trading platform to start and route it all through Bancor. Once you have decided on the network, you’re going to use, and whether it is directly through Bancor or not, you can begin.
You will then add liquidity to the Bancor pool- there are many of these available, so you can choose which one you want to start with. Once this is done, you will be able to buy Bancor Network tokens which represent your share in the pool.
This is where people take different approaches. Some people prefer staking tokens because this earns them staking points from the token project. If you’re directly using the Bancor Network, this can lead you to get BNT staking rewards as well.
Bancor liquidity pools are unique because they allow liquidity holders the opportunity to get the pool’s parameters, its fee models, reserve caps, and more. Since providing liquidity directly increases the demand for BNT, you can expect to profit from this.
Once you have become a liquidity pool holder, you can then either leave it as it is and wait, or you can look to Ethereum tokens and invest in those. You can then choose to hold on to your pools or liquidate them- the choice is yours.
How to sell, trade or buy Bancor Network Token (BNT) in the US?
While there are many ways to trade and buy Bancor Network tokens, do note that in the United States, if you want to buy Bancor Network tokens, then you can do so by trading US dollars on a variety of cryptocurrency exchanges.
Be careful about this because each country has a cap on how many BNT tokens can be purchased as a whole in the United States, and so you must adhere to these rules to begin trading.
There are many trusted crypto exchange websites, which we will talk about later, so you don’t have to worry about it. All Bancor users in the United States must start from there, so you’re not the only one.
Where can I buy Bancor coins?
After you have decided on the exchange of your choice, you have set up an account and made a deposit- according to how many BNT tokens you want to buy- you can then proceed forward towards buying the actual BNT tokens themselves.
You can then buy any cryptocurrency of your choice, such as Bitcoin or Ethereum. If you’re a beginner, you should probably buy Ethereum as it will be easier for you to use.
Next, you will have to search for a BNT market (pools, as we mentioned above) and trade the cryptocurrency for BNT. And that is all!
Top 5 Best Exchanges To Buy Bancor Network Token By Trading Volume
Now that we know what a Bancor network is, let’s move on to the question about buying Bancor tokens. There are many different options available for you to buy a Bancor network token. Here are some of the best places to buy Bancor Network Tokens.
HBTC
HBTC is basically a trading platform where you can buy and sell cryptocurrencies. Assets are handled entirely through the new decentralized blockchain technology, theoretically providing precise services for crypto assets to both individual traders and institutions.
HBTC is strictly secured to BTC, with a strict 1HBTC:1BTC exchange ratio.
Since BTC has the largest market capitalization across the cryptocurrency market, itis the most well-known digital asset, as a token deployed on the Ethereum network, HBTC is anticipated to inject liquidity in the decentralized marketplace.
Bancor Network Exchange
Bancor is a decentralized financial network seeking liquidity to small- and micro-cap coins and returns for liquidity providers. It has two smart tokens that facilitate its liquidity pools: BNT and ETHBNT. The BNT is set as the default currency for all smart tokens created on the Bancor network.
Binance
Binance is another cryptocurrency exchange platform that is used by millions. It is one of the largest cryptocurrency exchange. It can support many of the most commonly- and sometimes less commonly- sold cryptocurrencies.
Binance provides a sort of e-crypto wallet for its traders, where they can store their electronic funds.It even has its token currency, the Binance Coin. Furthermore, it also has supporting programs that help traders make investment decisions.
Its exchange services were launched in 2017. It offers high safety and security standards with multi-tier systems architecture with high processing capacities.
OKEx
Another cryptocurrency exchange is OKEx. It has more than $1 billion in daily trade volume. Apart from general token trading, OKEx extends a host of alternative products like futures trading.
Of course, OKEx is a popular–if controversial–cryptocurrency exchange with a significant emphasis on derivative products like futures trading. It also has its own currency, OKB. You can even change government-issued money (like the Euro) for cryptocurrencies right on the platform.
Coinbase Pro
Last but not least is Coinbase Pro. As its name suggests, Coinbase Pro is a trading platform for individual traders and crypto enthusiasts. It offers an intuitive, secure, secure network to buy, sell, and trade assets online across various trading options.
If you use this platform, you can track market changes, view trading history, and more. These features can be accessed for free through the Coinbase account. There are no signing up costs, which makes it an excellent platform for rookie traders.
Step By Step Guide To Buy Bancor Network Token BNT
It is straightforward to buy Bancor Network Token (BNT). All you need to do is go to Bancor Network Token (BNT)and register. From there, you can quickly receive the option to buy Bancor Network tokens.
The first you do is choose which token you want to play with. A dropdown menu appears, and this menu tends to give you your preferred Network token option. You choose BNT. You then select which BNT do you want to receive from the second dropdown menu.
Once this has been done, you press the convert button and start to convert the chosen token. You select your preferred currency, and then you will see that you will get a receiving on your end. The BNT token has been purchased by you now.
Register For A Crypto Exchange Account
You visit the Crypto.com/exchange website. From there, you tend to click on the SignUp button. Then a list of on-screen instructions will appear. Follow the instructions provided on the website.
Note that your email address will be used to send you a secure confirmation link, and your date of birth and residence address will be used to make sure that you are accessing the websites legally.
This is primarily due to the fact that cryptocurrencies are not legal everywhere. While it is legal in North America and Europe, some Asian countries still consider it illegal. So, if you use a VPN, make sure to keep it off.
Bancor Network Token Price Prediction
2021 is going to prove significant for the Bancor community. This is because there have been whispers about them achieving their goal of outreach all across the globe. This is because a lot of big names in multiple industries have started investing in the Bancor network.
It was taking advantage of the fact that it has a low price until recently. Do note that if you are thinking of investing in Bancor, now is a good time. This is because, by the end of this year, Bancor’s current price is set to increase two-fold.
Bancor Staking Process
To begin staking on Bancor, all you need to do is buy relay tokens. These will be automatically placed in your wallet. You can then look for them by looking up the list of token names in your wallet that starts with BNT.
These will be indicative of the relay tokens you’ve bought. Once you have done so, you’ll be happy to know that that is all it takes to begin staking on Bancor.
How can you earn staking fees?
You will earn a portion of the staking costs as the staking reward, whenever someone performs any kind of conversion that involves the relay you are holding in your wallet. The part of the expenses you make is in proportion to the amount of relay you own.
When you sell your relay tokens, you receive the cumulative amount of staking charges you earned through the time you held the relay tokens.
Remember, you can sell your relay tokens at any time. There’s no time limit. But also be advised that the price of tokens in the relay may change regardless of accumulated fees, thereby affecting the relay tokens’ cost.
The Bancor team has declared that new features are coming to the platform soon, which will allow the community to easily track these price movements and help optimize relay token returns.
Bancor Network Review
Many users are happy to use the Bancor Network. Bancor’s very structure allows user to participate and create liquidity pool for any variant of ERC-20 token. The investment need not be enormous either. You can begin with $1 only.
All tokens in Bancor network is related to other tokens, that is the formula behind the seamless on chain token conversion tranasctions. PEG Protocol’s USDB stablecoin holds $1 peg smartly. Bancor network utilizes USDB for it’s on chain transactions. USDB introduction is impactful since it permits users to implement liquidity pooling within stable coin crypto pool pairs to mitigate risk.
When you provide liquidity for a cryptocurrency token pair, you are actually staking that crypto token in anticipation of receiving rewards for securing the network. But, remember you are still susceptible to those crypto token price movement and may carry losses. If you don’t know what you are doing, it is better to avoid since liquidity pooling involves both smart contract risks and price movement risks. If the crypto token loses dollar value during its staking period, you may face a loss that will not be compensated by the generated staking rewards.
What’s New In Bancor V2?
Bancor V1 was released with the intent to solve the liquidity problem that exists in the current cryptocurrency climate. Bancor V2 is an upgrade of the protocol from the intial release of Bancor V1. Just like its predecessor, Bancor V2 Protocol contains these new powerful features
- AMM Liquidity Pool (Automated Market Maker) integration with Chainlink ($LINK) price oracles will remove the impermanent loss risk for volatile crypto tokens and stablecoins
- Providing liquidity with just a single token containing 100% exposure. In Bancor V1, you need to currently hold both crypto tokens in the pool pair
- Reducing price slippage with extra efficiency bonding curves
- Major Defi lending protocol support
These features address four critical issues that concerns with the wide spread adoption of Automated Market Makers (AMMs).
- Cuts back impermanent loss exposure
- Multiple assets exposure
- High Slippage problems when transacting and liquidity pooling
- Liquidity Pooling opportunity cost
If you are looking for a good alternative, you may want to take a look at Curve Finance. Or, if you are looking for a low emerging cap protocol, you may want to look at notional finance.
