Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Exchanges => Topic started by: mlawson71 on October 31, 2019, 06:15:49 PM
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The Bancor Network (operating form the bankor.network domain) is a project which facilitates the quick and easy conversion of different Etherum based tokens. The “exchange” launched after a successful ICO in the summer of 2017. The token which they launched is now tradable at the platform.
Bancor Advantages
A unique model – the most interesting thing about Bancor is the way trading is done. There are no bids, asks, market makers or takers. If you are willing to exchange a token there, you will simply be provided with a price. Bancor uses a formula for generating it, based upon the current prices at other exchanges and available liquidity. You would have to use an external wallet, like MetaMask (and the few others which are supported) in order to send the transfer. The company provides a very good tutorial for newcomers.
Low counterparty risk – obviously, this business model is in the true spirit of cryptocurrencies. One access the platform with his own wallet, makes a transaction and leaves. There is no centralized storage of each trader’s coins and hence no risk of an “exit scheme” – the exchange simply taking all of the client’s assets and closing.
A lot of tokens supported – at the time of writing, over twenty different ERC 20 tokens are supported at Bancor, with new ones being added frequently. The end-goal is to be able to exchange all tokens instantly, hence making the Ethereum network more efficient.
Possibly competitive costs of trading – this is a bit of a tricky subject, as the way transactions at Bancor are done, does not include traditional fees. There is a “maximum slippage” warning appearing before you finalize each trade. Keep in mind, the transfer will occur on the actual blockchain, so some fees (gas) will be involved.
Bancor Disadvantages
Not for everybody – Bancor is not for those who are unfamiliar with the Ethereum ecosystem. On the other hand if you know what a wallet, MetaMask and ERC 20 tokens are, this service is as simple as it gets.
No fiat currency support – This goes with the previous point and should be obvious by now – this service is only suitable for those who have ETH or any of the supported tokens. If you are looking to just get into the world of crypto, this is not the place.
No trading platform – Bancor does not provide that which most traders will call a “platform”. The entire interface is a simple order box. Line charts are included, but they will do a technical trader little to no good.
No margin trading – think of Bancor more like an exchange bureau than an actual trading venue. The fact leverage is not provided will not surprise you.
Conclusion
Bancor will not be suitable for everybody. (https://www.forexbrokerz.com/brokers/bancor-review)Some knowledge of the Ethereum universe will be required, before you can participate. The project feels like a much more user-friendly version of Ether Delta. Will this be the future one-stop-shop for Etherum based tokens? Possibly, but one can’t be sure at this point.
While the Bancor Network is quite transparent (unlike some of the shadier establishments in the world of crypto), their service is not that suitable for active traders.