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How to buy BakeryToken online
This beginner’s guide explains everything you need to know about the BakeryToken. Learn what it is and how it works, get advice on the best places to buy it, and find out what it’s prospects look like.
Compare where to buy BakeryToken, and open an account
The platforms in the table below are the best places to find BakeryToken. These beginner-friendly brokers are easy to get started with in just a matter of moments. To learn more about the BakeryToken first, scroll down to keep reading.
What is BakeryToken?
It’s the native cryptocurrency of the BakerySwap exchange platform. BakerySwap is an automated market maker, which means it uses a formula to set prices for each coin that it offers, and it pays out the BakeryToken (also known as BAKE) as a reward to users who provide the liquidity to make and take trades on the platform.
Along with those rewards, BakeryToken holders also get the opportunity to use the NFT (non-fungible token) marketplace on the BakerySwap exchange. That means you can spend BAKE on digital purchases like artwork or gaming accessories.
BakerySwap launched in late 2020 and its token was released at the same time. It was built to rival Uniswap, another decentralised exchange, and differs by offering cheaper transaction fees along with higher rewards for its token holders.
How does BakeryToken work?
It works by storing a history of all its transactions on the blockchain, a public ledger that replaces the need for a central authority to control the movement of money. As well as storing the financial transactions, the BakerySwap blockchain uses a series of formulas known as ‘smart contracts’ to spit out prices for each coin on the platform.
These smart contracts are based on how much of each coin the platform has access to. To encourage people to provide these coins, BakerySwap uses the same principle as a bank that pays interest on money in a savings account, by offering a reward to anyone who stores their BakeryTokens on the platform.
The other feature that makes it stand out is the blockchain it uses. Uniswap is based on the Ethereum blockchain, where transaction fees are notoriously high (blockchain fees are a bit like ordering an Uber: demand at peak times causes bottlenecks that send the price soaring). BakerySwap uses the Binance Smart Chain instead, which reduces those bottlenecks and is faster and cheaper as a result.
How to buy BakeryToken online – a step-by-step guide
Step 1. Find an exchange
The best place to buy BAKE coins is on an exchange platform. While they come in many different forms, as a general rule they offer the widest range of tokens and coin swaps. Here are two of the top exchanges around:
- Binance: Binance is the most popular platform, with billions in trading volume every day and hundreds of coins available. You can get coins online, or download its mobile app to make moves on the go. Sign up for Binance now >
- Bittrex: Bittrex is a beginner-friendly platform that prides itself on being the most secure exchange around. With a vast range of altcoins and an interface that’s easy to use, it’s a great pathway into cryptocurrency. Join Bittrex today >
Step 2. Sign up and fund your account
To use an exchange you have to create an account. It’s a simple process, but come prepared with your contact details and a form of photo ID to hand.
Next, you need to deposit money into your new account. The best way to do this is with a bank transfer or with a credit/debit card, as those are usually cheaper than any other form of payment.
Step 3. Purchase
Look for the BakeryToken by searching for its ticker symbol, BAKE, from your exchange account. Then pick one of the swap options, such as BAKE/BTC, enter how much you want to own, and execute the trade.
It’s possible the only options available are to get BAKE with another cryptocurrency. That’s normal for an altcoin, it just means you have to use your fiat currency (GBP/USD) to get another cryptocurrency first, and then use that to pay for your new BakeryTokens.
Step 4. (Optional) Get a suitable wallet
A wallet is the most secure place to keep your coins if you’re planning to hold them for a while. Wallets keep your coins safe behind a private key that’s unique to you. They come in many different forms, and here are two top ones:
- Infinito Wallet: Infinito is a mobile wallet, which means you can access your coins via an app on your smartphone, a bit like a banking app. It also comes with an integrated exchange so that you can buy and sell coins from within the wallet itself. Get Infinito Wallet now >
- Ledger Nano S: The Ledger Nano S is a hardware wallet, so it comes in the form of a USB-like device that you plug into your computer. It doesn’t connect to the internet at all, so it’s one of the most secure options out there. Get the Ledger Nano S now >
How to trade BakeryToken – a step-by-step guide
Step 1. Find a broker
The most important feature in a broker is low trading fees. If you want to make money in the short term then you need to make a lot of trades, and high fees can eat into your capital very quickly.
You should note that the BakeryToken isnt available with many brokers at the moment. Often they only offer the leading cryptocurrencies, so this is fairly normal, and new ones are being added all the time. The best places to check are eToro and Robinhood, two of the leading broker platforms.
Step 2. Deposit money
You have to fund your account with a fiat currency (like GBP or USD) before you can use a broker. Look out for the fees for this as well, as brokers tend to make their money by charging commissions on deposits, as well as withdrawals and the trades themselves.
Step 3. Decide how you’d like to trade
The most common way to trade cryptocurrency is using something known as a contract for difference, or CFD. A CFD is like a note that represents the price of an asset (a coin, in this case) and you can buy or sell it based on whether you expect the price to go up or down.
When you trade CFDs you never take ownership of the coin itself. Instead, your profit (or loss) is based on the price on the day you sell it compared to when you bought it.
Step 4. Start trading
Cryptocurrency beginners might want to start by using a demo account before diving into the real thing. Most brokers offer some form of virtual trading feature and it’s an opportunity to make trades with ‘pretend’ money rather than risking your own capital at first.
Then you have to decide which way you expect the coin’s price to move and take a long (buy) or short (sell) position accordingly. You should do some research first, and base your decision on what’s going on in the wider market as well as how you feel about the coin or platform itself.
Once you become more experienced, there are more trading methods available. One of the most popular is to use ‘leverage’, which is where you borrow money from your broker to make bigger trades. This is how people make big profits very quickly, but it’s also how to make enormous losses quickly if the market moves against you, so be careful.
To help you decide whether BakeryToken is for you, we’ve summarised the key pros and cons of the coin below. Then there are a few more tips about when to make your move and how long you should hold on for.
- Owning BakeryTokens means you can earn interest and dividends for helping out on the exchange
- You can use BAKE to order NFTs on the marketplace
- Its link with the Binance blockchain means it can offer especially good rates and bonuses for buying or holding Binance coin as well
Now here are three more questions for you to consider before you invest in BakeryToken.
1. Is it a good time to buy BakeryToken?
It is if you want to be able to earn rewards for owning the coins, as you can start making extra money right away. Otherwise, the answer depends on how long you intend to hold on to your BAKE for.
If you want to hold on for a while, then you might want to get in straight away if you expect it to keep climbing in value. If you have a short term focus, then it’s all about analysing the current price to see if it presents an opportunity to make a quick profit. You can use our own analysts’ work to help you decide:
2. What problem does BakeryToken solve, and what are the coin’s investment prospects?
It solves the problems of orders being left unmatched on the BakerySwap exchange by paying a reward to those who provide liquidity. The exchange as a whole solves the problem of slow transaction speeds and high fees that have affected other platforms.
It’s prospects are likely to be good during cryptocurrency booms, like the one we saw during the first few months of 2021. With a portion of transaction fees paid out to BakeyToken holders, the more of those there are the more demand there’s likely to be for the token.
The biggest challenge is whether that can be maintained in a slower market given the number of other exchanges trying to solve a similar problem. There are so many that BakerySwap isn’t even the only one with a food theme (thanks to SushiSwap and PancakeSwap). You should keep tabs on the latest news to see if one is able to separate from the rest.
3. Do you want to hold BakeryToken for the long term?
There are pros and cons to each approach, and it largely depends on what sort of investor you are. Here are some final considerations for each investing strategy.
Considerations for a long term investment strategy
If you want to use the coins to earn rewards, or simply expect the price to keep rising over time, then you want to find an exchange and get some straight away. Then think about choosing a wallet to store the coins in.
Considerations for a short term trading strategy
A short term approach means you want to analyse the current price and wait for indicators that tell you when to make a move. When you choose a broker, remember to pick one that charges low trading fees.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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