How to buy Band Protocol online
This introductory guide explains what Band Protocol is, what makes it different, and teaches you about its native BAND coin. It shows you where to buy BAND and what to think about before you start investing.
Compare where to buy Band Protocol, and open an account
You can buy Band Protocol straight away by visiting one of the brokers below. Our team of crypto experts have reviewed all the most popular brokers to find the best one for your individual needs. If you aren’t ready to buy yet, you can read on to learn more about Band Protocol.
What is Band Protocol?
Band Protocol connects blockchain apps with internet data. Like a scanner that digitises offline data so it can be searched online, Band Protocol grabs real time data from internet sources so it can be used by apps on the blockchain. This is particularly useful for apps in decentralised finance that need the most up to date information on exchange rates or commodity prices to offer their services.
The BAND token is Band Protocol’s native cryptocurrency that’s used to ensure the best possible search performance, it rewards users for good behaviour and pays the transaction fees. Band Protocol raised most of its initial funding in 2019 and is now backed by a group of investors that includes the cryptocurrency exchange, Binance.
How does Band Protocol work?
Band Protocol works by using its software to respond to data requests. The software finds the data online, sends it back to the app that requested it, then stores a record of the transactions on a blockchain of its own which is public and can be verified.
The BAND token is a crucial part of the process, as it encourages individuals to use their computer power to run these searches. To contribute, a user has to stake a set amount of BAND that can be destroyed if he returns poor results or acts maliciously. So BAND helps to keep the search decentralised, without a single point of failure, and incentivises good behaviour.
There are positive incentives too, as successful stakers are paid a reward out of the fees charged on each transaction and newly created new tokens. The inflation caused by minting new coins is deliberate, as Band Protocol wants to have as many people contributing to the process by staking their coins as possible.
How to buy Band Protocol online – a step-by-step guide
Step 1. Find an exchange to buy Band Protocol
The easiest way to buy BAND coins is to join an exchange. Although you might find an exchange that lets you buy BAND directly with fiat currency (like GBP, USD, or EUR), more likely you will need to transfer your money into another cryptocurrency first.
Here are two of the top exchanges to buy BAND with:
- Binance: With Binance you can trade more than 100 cryptocurrencies. Binance has more trading volume than any other exchange and so is a great place for most crypto trading. Sign up for Binance >
- Bittrex: Bittrex is a cryptocurrency exchange that focuses on flexibility and security. It offers all the most popular cryptos and a few different ways of trading. Join Bittrex now >
Step 2. Sign up and fund your account
To start trading on an exchange you’ll need to sign up for an account. Signing up is easy but you’ll usually need to verify your identity by providing a form of photo ID. Funding your account can be done with fiat currency, but for BAND you’re going to transfer that currency into a cryptocurrency first. The best way to do this is to buy Bitcoin.
Step 3. Buy Band Protocol
Once you have your cryptocurrency ready to go, just look for the BAND/BTC pair and execute the trade. This process is the same whichever crypto you choose, just search for the right pair and hit buy.
Step 4. (Optional) Get a suitable wallet
The final step is to get yourself a wallet to store your new coins. This isn’t necessary, as many exchanges offer some kind of wallet service of their own. For the most secure storage, however, you need a wallet. If you plan on holding a lot of BAND tokens or many different crypto coins, a wallet might be the best way to go.
Here are two of the top wallet providers available:
- BitLox: A hardware wallet that holds your coins completely offline. It offers a few different wallet options depending on the level of security you’re looking for. Get a BitLox wallet now >
- StrongCoin: StrongCoin is an online hybrid wallet that lets you store your coins on your desktop, laptop, tablet, or mobile device. Sign up with StrongCoin >
How to trade Band Protocol – a step-by-step guide
Step 1. Find a broker
To trade Band Protocol you want to find a broker with low trading fees that lets you trade as much as you want. At the moment, there aren’t many brokers that offer BAND trading. This might change in the future, and if it does eToro and Plus500 are two of the top brokers around.
Step 2. Deposit money
You can deposit fiat currency into your brokerage account and start trading straight away. Some brokers have deposit limits or reward schemes, so make sure you know what you’re entitled to before you start.
Step 3. Decide how you’d like to trade
With a fully funded broker account, you need to decide how you want to trade. One of the most popular ways to trade cryptocurrencies is using contracts for difference (CFDs). CFDs let you speculate on price movements without owning the asset itself, so it can be a great way of getting involved in cryptos that might be too expensive to own directly.
Step 4. Start trading
Now that you have a strategy, it’s time to start trading. The last decision boils down to whether you think BAND is going to go up or down. If you expect it to go up you can take a long position, which just means buying some BAND tokens. For the less optimistic, ‘shorting’ an asset means backing it to go down.
Once you’ve got to grips with the basics, you can start to experiment with more advanced trading strategies. One of these is trading with leverage, a way of making much bigger trades by only putting up a small percentage of the overall amount.
That smaller amount is called the ‘margin’. Trading on the margin can open up much bigger wins but it also makes it much more risky by introducing big losses into the mix as well. You should only use the margin if you know what you’re doing and understand the dangers.
There’s no problem with taking some time to think about investing in cryptocurrency. We’ve put together some pros and cons as well as a few final questions to help you decide whether or not to buy Band Protocol coins.
- You can earn rewards by staking your coins
- Band is a way of investing in the technology as it operates ‘cross-chain’
- Holding BAND coins gives you voting rights on the platform’s future
- BAND coins experience high inflation if you don’t stake them
- There’s competition from other cryptocurrencies that offer similar technology
Finally, here are three more questions that you should think about before you invest in Band Protocol.
1. Is it a good time to buy Band Protocol?
It depends on what your goals are for investing in crypto. BAND could be a good way of getting exposure to the performance of the blockchain as a whole, but its high inflation means it might not be the best option to simply buy and hold.
In the short term, the prospect of inflationary pressure is less important. You might want to think about the competition, or decide if the current BAND price lends itself to trading opportunities. You can follow any market analysis for signs of anything that might affect Band Protocol below:
2. What problem does Band Protocol solve, and what are the coin’s investment prospects?
Band Protocol solves the problem of connecting internet data sources to the blockchain. It makes it cheaper and faster to access up to date information, as data takes less than six seconds to show up. This is a big boost for apps in decentralised finance or betting, that need real time information to operate.
BAND’s investment prospects depend on the continued growth of new apps on the blockchain. There is some competition, notably from Chainlink, that it needs to overcome to benefit from that. As an investment you should also consider the inflation factor, as the value of your holdings will decrease if you don’t do anything with them.
You should always do your research before buying. As BAND holders can vote on the future of the platform, including things like the inflation and transaction costs, these could change at any time. Stay on top of the latest news below:
Fantom uses Band Protocol’s (BAND) price oracles to launch Liquid Staking
Brave New Coin and Band Protocol team up for crypto price oracles
3. Do you want to hold Band Protocol for the long term?
If you believe in the continued growth of app development on the blockchain, it could be a good idea to buy BAND for the long term. It might be a way of investing in the success of blockchain technology, while it’s also a good investment if you want to get involved in Band Protocol itself. As a holder you can stake coins or vote on the future of the platform.
Considerations for a long term investment strategy
The biggest consideration for a long term strategy is the inflationary effect. If you want to buy for the long term, read up on how to stake your coins on Band Protocol and protect yourself against your coins losing value. Once you’ve done that, the best way to buy is to sign up for an exchange and get started.
Considerations for a short term trading strategy
In the short term you don’t need to worry about inflationary trends or the wider state of the blockchain. The important things to think about are finding a broker with low trading fees and learning more about the different strategies you can use to trade.