Bancor (BNT) Reviewed

This Bancor review has revealed that Bancor that allows for users to convert between two tokens, the same principles on which most exchanges are based. Bancor protocol aims to be a new standard according to which ERC20 tokens will be exchanged.

Choose your quick section of our Bancor review below.

A Quick Overview of our Bancor Review:

Live Price

Cryptocurrency Prices by Coinlib

What is Bancor?

Bancor is a network that allows for users to convert between two tokens, the same principles on which most exchanges are based. Bancor lets users convert these tokens without interference from an intermediary, allowing users to take advantage of an automatically calculated price.

Key Features and Takeaways of Bancor

Bancor is one of the most popular cryptocurrency networks and platforms that has the following key features and takeaways:

The Bancor protocol aims to be a new standard according to which ERC20 tokens will be exchanged. Using smart contracts, the protocol connects to liquidity networks, providing the network with consistent liquidity, eliminating the need for buyers or sellers.
The Bancor protocol takes advantage of “connector” modules, proprietary technology where the balances of different ERC20 tokens are held in smart contracts.
Prices are recalculated by using the Bancor Formula, used to maintain the balance between connectors and smart contracts.
The Bancor protocol is considered a revolutionary step in cryptocurrency spaces as result of its ability to enable the conversion of coins without having to match two parties.
There is no spread (the difference between the buy/sell price expressed in pips) which means that users are provided with low-cost conversions that are courtesy of the automated market maker (AMM) which is non-profit in nature.
The Bancor Formula also ensures that prices which are given are transparent and cannot be manipulated or corrupted. There is also transaction size incorporated and there is no need for an order book.
As result of the consistent liquidity, users can convert a token whenever they want, despite whether they are a buyer or a seller, and regardless of the chosen trading volume.
Bancor uses smart contracts through which transactions are executed which eliminates deposits and the need for trust between third-parties.
The native token for Bancor is BNT, the hub network token. Users can either convert tokens within the network to BNT, or they can convert BNT to other tokens.
BNT can also be used as an intermediary to convert tokens between one another, with the Bancor Formula calculating the rate for such conversions.

Bancor Mining

Staking

BNT cannot be mined but users can stake coins on the official Bancor website by following these steps:

The user can navigate to the official Bancor website and select “Add Liquidity”.
Under the option for “Single-Sided Protection”, the user can select “Stake and Protect”.
The user can select if they want 100% exposure to the base ERC20 token or to BNT directly. The user can select the dropdown menu and toggle between either BNT or REN. Next, the user can provide the number of tokens that they wish to protect, or they can select “Balance”, which will select the entire balance of tokens.
Next, the user can select “Stake and Protect” to confirm the transaction in bot the app and in Metamask.
The user’s protected single-sided liquidity stake will now appear in the “Protection” screen. If it does not automatically appear, the user can refresh the page.
On this page, ROI will indicate the user’s individual returns while APR indicates the overall returns of the pool for all liquidity providers (LPs) which are based on 1 day and 7 days of activity on the network.
When the user provides BNT liquidity to a pool, they will receive vBNT return. This represents the protected pool stake in addition to the user’s voting power in the governance of the Bancor network.

Voting

To vote using vBNT, users can follow these simple steps:

The user can navigate to the voting interface.
If the wallet of the user is connected, they will see their vBNT balance on this page. Users can select the option to “Stake Tokens” to stake their vBNT into the voting contract, letting the user use them with the governance interface.
Once selected, a pop-up will allow the user to select the amount of vBNT they want to stake.
By clicking “Balance”, it will automatically select the maximum amount of vBNT available.
Once the user has provided/selected the amount of vBNT, they can select “Stake Tokens”.
Once the transaction has been confirmed, the user’s tokens will be staked in the governance contract. The user will see a counter that indicates the time left to wait until they can unstake their vBNT.
Once the user has staked their vBNT, they can proceed to vote on existing proposals, or they can create new proposals, which will cost them 25 000 vBNT.

Pros and Cons

✔️ Pros	❌ Cons
Bancor employs a unique model that does not have bids, asks, market makers or takers	Bancor is not intended for those who are not familiar with the Ethereum ecosystem
There is a low counterparty risk as result of the unique business model	There is no fiat currency support
There is a significant number of ERC20 tokens that are supported on the Bancor network	There is no trading platform provided, the interface consists of a simple order box
There are competitive costs of trading	Margin trading is not supported

Transaction Fees

💰 Type of Fee	ℹ️ Information
Creation of proposals for the network	25 000 vBNT
Withdrawal Fees	1.5 BNT

Should you buy Bancor?

Even though beginners to the Bancor network may face a small learning curve, Bancor has proven that it is worth the investment. It does away with many problems faced by other networks and exchanges by automating liquidity in the network.

In addition to this, Bancor has made it quite simple for developers to build exchange applications seamlessly while enjoying access to a plethora of ERC20 tokens. The development team is also consistently working on this project to improve it, offering users with the best possible service.

There are, however, some concerns faced, such as issues with regulations in the United States and other jurisdictions, but it is an issue that may become easily solvable as mass adoption of digital assets and blockchain technology increases.

How to buy Bancor (BNT)

Step 1 – Register an account with Gate.io

Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.

Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.

Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.

Log into your account using your credentials and complete the reCAPTCHA.

Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.

Before you can use the platform to purchase Bancor/BNT and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.

Click on “KYC Now” at the bottom of the webpage to start the process.

Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.

Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.

Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.

Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.

Once you have done this, click on “Confirm and Submit”.

Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.

On the new page that loads, select “Click here” to set up Two-factor Authentication.

Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.

Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.

Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.

Step 2 – Deposit funds

You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.

BNT can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.

Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.

You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.

Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading BNT.

Step 3 – Explore your trading options

Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.

To start trading BNT, select the option from the “Trade” Menu. Enter “BNT” into the search bar to see which trading options are available.

For spot trading, for instance and as an example, select BNT_ETH. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair BNT/ETH.

Here, you will see that you have the option to buy or sell BNT either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.

Step 4 – Buy BNT through via Limit Order

To buy BNT and create a limit order for it, you can enter the amount of BNT you want to purchase, and the price you want to buy it at in ETH. This tool will tell you what the overall cost is in ETH, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.

Step 5 – Sell BNT through via Limit Order

To sell BNT, find the panel under the chart and create a limit order for ETH according to your own preferences.

Step 6 – Withdraw funds

To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.

Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.

Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.

Frequently Asked Questions

When was Bancor first launched?

Bancor was launched in June 2017.

Who founded Bancor?

What is “ICO”?

It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.

When was Bancor’s ICO and how much did it raise?

Bancor’s ICO was held in 2017 and raised 2.1 billion ZAR.

Is Bancor legit?

Yes, both Bancor and BNT are legit.

What is Bancor’s total supply?

BNT has a total supply of 74 319 827 tokens.

What is the purpose of Bancor?

It provides a network where there is the permissionless exchange of assets by making use of smart contracts, eliminating the need to match buyers and sellers.

On which blockchain is Bancor based?

Bancor is based on the Ethereum blockchain.

Does Bancor work with smart contracts?

Yes, Bancor uses smart contracts.

Does Bancor have potential to become more valuable?

Yes, Bancor offers a unique solution to the conventional way of trading or exchanging tokens, ensuring that it will increase as decentralisation and permissionless services increase in popularity.

4.5/5 - (15 votes)

Written by:

Louis Schoeman

Edited by:

Skerdian Meta

Fact checked by:

Arslan Butt

Updated:

November 28, 2021

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.