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What is Bancor?
Bancor is an initiative that is taken by the popular B protocol foundation, which is a non-profit organization having its headquarters situated in Zug, Switzerland. Bancor has brought revolutionary ideas into the world of cryptocurrencies and blockchain technology.
Later Bancor had an astonishing ICO who raised more than $150 million dollars in a matter of hours.
By using the Bancor protocol, anyone can create their own form of cryptocurrency known as a smart coin. This coin is capable of holding and trading other cryptocurrency coins.
The usage of smart tokens come with many benefits. Users can convert their digitally issued block-chain tokens without the need of getting matched with buyers/sellers via an exchange. This ease of conversion is definitely a big thing!
This approach of conversion also guarantees constant liquidity for all kinds of tokens and exchanges. Furthermore, the tokens that get converted through this process, are converted directly on-chain. This suggests that the entire process goes on in real-time. Since there is no third-party involved in this process, there is no risk of fraud or tampering, unlike other centralized exchanges.
How to buy Bancor?
Before you head out to buy Bancor coin, you must note that it is not possible to buy Bancor using fiat currencies. This means that you cannot really use USD or Euros directly. Instead, you will have to take an alternate route.
First, you must buy Bitcoin or buy Ethereum using fiat currencies. Then, you can head towards an exchange such as UPBIT, Bittrex, and Binance (more on this later) and exchange your Bitcoins or Ethereum coins with the Bancor. This is the only way through which you can buy BNT.
To buy BNT, follow the steps below:
Choose and open a wallet
Opening a wallet to store BNT is perhaps the first step that you need to take. Since Bancor is an ERC20 token, you can store it in any wallet that is ERC20 compatible. In this guide, we will use MyEtherWallet, which is one of the easiest and reliable options out there.
- Go to myetherwallet.com and choose a difficult password that you can remember. Write this password down somewhere and store it in a safe place, as losing this password could result in a loss of access to your funds.
- Click on ‘Download Keystore File’. You have to create a backup of this file in multiple external hard drives and keep them all safe. Once done, click on I understand, continue.
- At this point, you will get access to an unencrypted private key for your wallet. Your private key has to remain safe with you, and should not be accessible by anyone at all. Otherwise, your funds can get stolen. A safe practice would be to print your private key out and store it in a locker. Once done, simply erase all its references from your computer for added safety.
- To open your wallet, click on the ‘Keystore File’ option and upload the file saved in the second step. Now, enter your password and you will see your wallet at the bottom of the page.
- A string containing letters and numbers will be displayed to you titled as ‘Your Address’. This will be the address of your personal wallet. Copy it, as this is the address where you will be sending your Bancor coins.
Buy Bitcoin or Ether
To buy Bitcoin or Ethereum from Coinbase, follow the steps below:
- Go to Coinbase website and click on ‘sign up’. Then, fill out your name as it is written on your photo id, add in your email, password, and real location.
- You can use a credit/debit card for instant purchases, however, it will cost you additional charges. On the other hand, a traditional bank transfer is far cheaper but is quite slow.
- Upon successful verification of your payment details, choose the buy/sell option visible in the top menu.
- Select Bitcoin or Ethereum from the bottom end of the window, and choose the amount that which you want to spend to buy the coins.
- Once done, click the buy button and confirm your transaction.
Choose an exchange and buy Bancor
As it is mentioned above, it is not possible to buy Bancor via a fiat currency. Instead, one has to exchange them with existing cryptocurrencies such as the Ethereum coin or Bitcoin through a crypto exchange.
There are many different choices for you to choose from, as far as cryptocurrency exchanges are concerned. Nevertheless, we have compiled a list of the most suitable ones for Bancor (BNT) below:
Binance >> In the cryptocurrency market, Binance is an extremely popular crypto exchange. Since many people have been using it, you can easily find plenty of tutorials related to it on the internet. This exchange charges you a trading fee of 0.1% with no fee for deposit.
Bittrex >> Bittrex is considered as one of the most stable cryptocurrency exchange markets with the highest turnover. It is quite reliable. However, its interface might not be very suitable for beginner traders. It does not charge any fee for deposit. However, it does have a 0.25% trading fee.
Transfer Bancor to wallet
Once you have exchanged your Bitcoin or Ethereum for Bancor coins successfully, you can use the wallet address that you copied at the end of step 1 to send the BNT to your wallet.
Step-by-step Guide: Buying Bancor at Binance
How to buy BNT from Binance?
- The Bancor buy process on Binance is pretty easy. One does not really need a lot of experience in trading, in order to get used to this exchange. Once you have deposited all your funds in the form of Bitcoin or Ethereum, you are ready to go!
- Reach out to the menu situated on the right top corner of your screen and click on Exchange > Basic. This will open up the basic trading screen for you (suitable for beginners).
- Locate the cryptocurrency tab on the right end of the window, and choose the cryptocurrency that you want to do trading in, for instance, BTC, BNT, and ETH.
- After the loading is complete, locate the column at the left hand side of the window. This column reflects all the selling prices with the red part referring to the buying prices while the middle number reflects the end sale price.
- A buy box will be visible below the graphs. Click on this box to place your order right away!
- Once you have placed your order successfully, your order will start getting filled and you will see your funds appearing in the deposits/withdrawal menu.
- When you are ready to withdraw your funds, you can send them to the wallet of your choice.
Well as far as wallets are concerned, they are more like storage mediums for your cryptocurrency funds. Many wallets come with different features, each unique for themselves. Nevertheless, most of the cryptocurrency wallets do qualify in performing the basic operations which include management of your funds, sending the funds, and receiving the funds.
We have compiled a list of the most popular Bancor wallets for you below:
MyEtherwallet is one open source wallet, using which you can generate a personal Ethereum-based wallet. Since Bancor is an ERC20 class compliant token, it can be stored in any wallet that supports Ethereum.
- Offers a high level of anonymity.
- Simple interface.
- Has an open source.
- No two-factor authentication.
- Not so secure.
- No multi-signature.
- Questionable reputation.
The MIST wallet is quite a highly reputed wallet that is used for storage of Ethereum coins. Bancor is an ERC20 class compliant token, which suggests that you can easily store and manage it using MIST.
- It is an open source wallet.
- Has a good reputation.
- It is available on Linux.
- Difficult interface.
- Right version is always needed.
The Ledger Nano S is a hardware wallet that comes with a screen. Since it has a screen on it, it can even be used on computers that are carrying a malware without affecting the funds stored. This is one of the safest options today.
- It is the cheapest yet reliable hardware wallet with a screen.
- Extremely safe.
- Its setup is very easy.
- It can be used on any desktop computer.
- It does not have a passphrase passport.
- Not free.
- Not suitable for beginners.
Freewallet for Bancor
Freewallet is a mobile wallet service that can be used through its website Freewallet.org, and it also offers wallets for Android and IOS devices. Since they can store Ethereum, Bancor BNT can also be stored on it as it is an ERC20 class compliant token.
- No backup is required.
- Offers additional security.
- It allows you to buy coins.
- Users can experience glitches at times.
- Not reliable.
- Its interface is not very stable.
Why not just store coins on exchanges?
Exchanges such as Bittrex do allow you to keep your cryptocurrency funds (in this case, Bancor BNT) into their deposit box for a prolonged period of time. However, keeping your funds stored in exchanges is not a safe option. This is because exchanges do always happen to carry risks of undergoing online heist attempts along with other hacking or external tampering incidences. Hence, storing your funds on a hardware wallet and keeping them safe inside a private wallet is the safest of all options.
In a Nutshell
Since Bancor BNT cannot be bought through traditional currencies such as USD, you will have to make use of a cryptocurrency exchange. The first step would be to buy Bitcoins or Ethereum coins through Coinbase and then exchange them for Bancor BNT through an exchange such as Binance. Finally, you are advised to send the exchanged funds to an external wallet immediately, rather than leaving them on the exchange for long.
Thank you for reading the Bancor guide and make sure to check out our website for more comprehensive content.