Want to learn how to buy Balancer? You can buy BAL on eToro!
The use of decentralized applications on the Ethereum network has opened a massive range of advancements in the worlds of finance, banking, lending and more.
The Balancer (BAL) token aims to increase liquidity between coins, tokens and blockchains using the technology laid in place by Ethereum. Though Balancer hasn't been on the market for very long it’s already attracted the eyes of both cryptocurrency experts and new investors alike. After it launched it quickly became one of the top platforms in the decentralized finance (DeFi) ecosystem on Etheruem.
Interested in learning more about how to buy Balancer? Our guide will outline how you can create a cryptocurrency portfolio, store your tokens and learn to decide when you want to sell and take your profits.
Brief History of Balancer
Balancer is an automated market maker and decentralized exchange built on the Ethereum network. Balancer is an ERC-20 token, which means that it uses the framework set in place by the Ethereum network to support decentralized application services.
The goal of Balancer’s exchange and liquidity pool is to provide cross-support and liquidity between tokens. When users trade, Balancer fills orders using multiple liquidity pools, improving pricing and transaction speeds.
Balancer’s token (BAL) acts as both a protocol that supports the network as well as a governance token that provides users with the rights to vote on future matters concerning the direction of the network.
Balancer was launched in June 2020. During its initial coin offering, Balancer entered the market at a price of $15.20 per token. The price of Balancer peaked on August 30, 2020 at an all-time high of $37.01 per token.
Balancer is currently the 116th largest cryptocurrency project when measured by total market capitalization, with a market cap of over million and a daily trading volume of about .3 million.
How to Buy Balancer
- Open an Online Account.
Buying Balancer typically begins by opening an account with a crypto exchange that supports the purchase and sale of the BAL token. A crypto exchange is similar to a brokerage account because your exchange will provide you access to a trading platform you can use to buy and sell cryptocurrencies by placing orders. Your broker will also usually charge you a small fee for each trade that they execute on your behalf.
Though Balancer isn’t as popular of a cryptocurrency project when compared to major advancements like Bitcoin and Ethereum, there are still a few brokers that offer access to the BAL token. - Buy a Wallet (optional).
If you plan on taking a long-term approach to cryptocurrency investing, it’s a good idea to open a private crypto wallet before you make your 1st purchase. A cryptocurrency wallet is a physical device or an application that provides you with a private set of keys that you can use to store your coins and tokens off of your exchange of choice. Wallets provide you with a higher level of security when storing your investments, as exchanges are often the targets of hacks and phishing attempts.
As an ERC-20 token, you’ll be able to store your BAL using virtually any wallet that’s compatible with the Ethereum network. This will provide you with plenty of options when you select a wallet.
Let’s take a look at a few of the factors you’ll want to consider when you decide where you want to store your tokens.
Hardware vs. software wallets. There are 2 types of cryptocurrency wallets — hardware and software. Hardware wallets are USB-like devices that store your coins offline. Software wallets are computer or mobile applications that must be connected to the internet in order to access your investments. While hardware wallets provide a higher level of security for your tokens, they’re also significantly more expensive and hold fewer types of tokens than comparable software options.
Supported coins and tokens. Not every cryptocurrency is a derivative of the Ethereum network. If you’re also investing in coins that use their own blockchains (like Bitcoin and Litecoin) you’ll need to be sure that the wallet you choose supports these coins as well as any ERC-20 tokens.
Price. If you decide to invest in a hardware wallet, you’ll need to balance security features with your individual budget. Though some wallets cost upwards of $100, there are plenty of safe and secure options available for less than $50. If you’re looking for a free way to store your tokens, a software wallet might be a better option for you. - Make Your Purchase
When you’ve set up your account and created your wallet, you can purchase your tokens from your exchange. To get started, take a look at the current market price of Balancer and decide how many tokens you’d like to add to your portfolio.
Once you choose how many tokens you need to purchase (and a maximum price you’re willing to pay for each token if you’re placing a limit order), you’ll submit your order through your broker’s trading platform.
From here, your broker will take care of the rest, filling your order according to your specifications. The cryptocurrency market is open 24 hours a day and 7 days a week, so you can place an order at any time. If your broker is able to fill your orders, you’ll see your BAL tokens in your wallet.
Tip:
The proposed amount of distributed BAL is 145,000 per week or 7.5 million per year. This means that in its 1st year on the market, there will be about 30% inflation of the initially offered tokens. This is meant to kickstart governance rights to those who buy in early. If you’re interested in using governance powers on the Balancer network, you might want to buy in before the token’s 1st anniversary in June 2021.
Best Crypto Brokers
Browse a few of our favorite options below and open an account with the broker that best fits your needs.
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Best Crypto Wallets
Now that you know how to buy Balancer you need to know how to store it safely. Start your search by considering our favorite ERC-20 hardware and software wallet options below.
- Crypto enthusiasts
Best Hardware Wallet: SafePal S1 Hardware Wallet
Looking for a quick and portable option to track and manage your cryptocurrency on-the-go? Be sure to consider the comprehensive SafePal S1 wallet. The size of a credit card, you can easily take your SafePal wallet with you no matter where you travel.
To transfer your coins and tokens, connect to the SafePal app using a local QR connection — no need to risk your coins by connecting to public Wi-Fi or using a Bluetooth device.
Best of all, SafePal offers support for over 10,000 individual cryptocurrency tokens and coins, which means that you’ll enjoy a single wallet for all of your investments.
Best Software Wallet: MyEtherWallet
The original Ethereum wallet, MyEtherWallet is a mobile and desktop wallet that allows you to store Ethereum and any ERC-20 token with ease for free. Simply download the MyEtherWallet app from your app store of choice or connect online.
Most users will be able to open their private wallet in as little as a few minutes and transfer their coins and tokens to their wallet instantly after setup. MyEtherWallet has even partnered with iBty, Kyber Network, Changelly, and Simplex to provide wallet holders with a faster way to swap tokens.
Trade or Sell Your Cryptocurrency
If your broker is able to complete your order according to your specifications, you’ll see your BAL tokens in your wallet.
From here, you have 2 options moving forward:
- Store your BAL for long-term investing. If you want to use your governance rights or you believe in the long-term potential of the Balancer network, be sure to transfer your tokens to your wallet as soon as possible. This keeps your tokens safer and limits your liability if your broker is hacked.
- Actively trade your BAL. If you think the price of BAL will be more volatile, you might want to day trade or scalp your tokens. If this is your strategy, you’ll typically want to leave your tokens in your exchange wallet so you don’t lose any of your investment transferring back and forth from your wallet. When you decide to take profits, you can convert your BAL to a stablecoin like USD Coin or Tether for safe storage.
If you plan to become a more active investor, you’ll need a trading platform customized for frequent traders. Explore a few of our top-rated options below.
Current Crypto Prices
Cryptocurrency markets are open around the clock, which means that frequent, drastic price changes are common. Keeping track of how the market is moving can help both short-term and long-term investors buy and sell at the most advantageous times. Consider a few of today’s market movements below before you begin trading for the day.
Diversify Your Cryptocurrency Investments
Like any type of investment, it’s never a good idea to divert all of your capital into a single asset because if that asset suddenly drops in value, you could see a substantial loss. Instead, consider investing in other ERC-20 and Ethereum based projects (like Chainlink or Yearn.finance) to diversify your portfolio and safeguard your investment.
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About Sarah Horvath
Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.