BitShares for beginners: How to buy, sell and trade BTS
Wondering how and where to buy, sell and store BTS? Read our comprehensive guide.
BitShares is a blockchain-based financial platform that offers a decentralised asset exchange. More than that, BitShares looks to expand the blockchain to all industries that provide services on the Internet, from banking and stock exchanges to music, auctions and many other types of services.
BTS is the native token of the BitShares blockchain and has a wide range of uses on the platform. This guide explains how BitShares works, the role BTS plays, and how you can buy, sell and store BTS.
Where to buy BTS
You can buy BTS at a wide range of crypto exchanges, including:
A step-by-step guide to buying BTS
If you want a detailed guide on how to buy BTS, here’s what you need to do:
Step 1. Register for an account with an exchange that lists BTS
Review the list of exchanges that offer BTS in one or more currency pairs and compare the pros and cons of each platform. Once you’ve decided on the best exchange for your needs, you can sign up for an account by providing your email address and creating a password.
To satisfy Know Your Customer and Anti-Money Laundering (KYC/AML) regulations, many platforms will also require you to provide your personal details and proof of ID. If 2-factor authentication is available as an option, make sure to enable this account feature before you start trading.
Step 2. Deposit funds into your account
It’s not currently possible to buy BTS with New Zealand dollars (NZD), so you’ll first need to acquire a currency listed in a trading pair alongside BTS, such as bitcoin (BTC) or ether (ETH). You can do this on an exchange such as Binance.
Depositing cryptocurrency into your account is an easy process. For example, if you’re using Binance, click on “Funds” and then “Deposits”. Choose the currency you want to deposit and copy the wallet address or scan the QR code so that you can send funds to the right place.
Step 3. Buy BTS
The final step is to click through to the trading page on your chosen platform and place your buy order. If you’re using Binance, click “Exchange” and choose either the “Basic” or “Advanced” view. Search for the pair you want to trade, such as “BTS/BTC”, and specify whether you want to place a Limit, Market or Stop-Limit order. You can then enter the amount of BTS you want to buy.
No matter which platform you’re using, make sure to review the total cost and full details of your transaction before clicking “Buy BTS”.
How to sell BTS
You can sell BTS at the same crypto exchange where you buy BTS, except you’ll need to enter the number of BTS tokens you want to sell in the “Sell BTS” tab. Remember, too, that you may not be able to exchange BTS directly for the currency you want to acquire.
Which wallets can I use to hold BTS?
There are three types of wallets you can use to store BTS.
- Web wallets. Examples include the BitShares web wallet and exchange, and the OpenLedger wallet.
- Desktop wallets. BitShares offers a desktop wallet version for Windows, Linux and Mac OS X.
- Mobile wallets. You can store your tokens in the SmartCoins Wallet app, and the BitShares Wallet and Trade app.
What is BitShares?
BitShares was created in 2014 by Dan Larimer, the crypto icon who has also played a key role in the creation of EOS (EOS), Steem (STEEM) and other notable projects. By providing a platform for decentralised financial transactions and interactions, BitShares is designed to provide the “unbanked” with access to crucial financial services.
The platform is based on Graphene, an open-source blockchain also used by Steemit and a number of other platforms. Theoretically capable of handling 100,000 transactions per second, and with an average block time of just 1.5 seconds, it’s designed to offer fast and affordable transactions to users.
Anyone with an Internet connection can create a BitShares account and then use the platform to access a variety of financial services, including:
- A decentralised asset exchange. Users can trade digital assets with one another and avoid the security risks associated with centralised exchanges.
- SmartCoins. These are price-stable cryptocurrencies that have their value pegged to another asset, such as the US dollar or gold, by the BitShares core currency BTS.
- Automated recurring payments. Using smart contracts with built-in support for subscriptions and recurring payments, BitShares allows users to authorise third-parties to make withdrawals from their accounts.
- User-issued assets. Users can issue their own tokens.
What to consider if buying BTS
Cryptocurrencies are a risky asset. You need to understand this if you’re looking to buy BTS or any other cryptocurrency. If you want to buy BTS, make sure you consider the following factors:
- Supply. According to CoinMarketCap, the circulating supply of BTS in June 2018 was 2,630,780,000 tokens out of a maximum supply of 3,600,570,502 BTS.
- BTS use. BTS is the native token of the BitShares blockchain. Its primary use is:
- To pay transactions and fees on the BitShares exchange
- To act as collateral to create pegged assets, such as BITUSD or BITGOLD
- To pay the community that develops and maintains the BitShares blockchain
- To stake for creating new tokens
- Availability. BTS tokens are available on more than fifteen exchanges, some of which accept fiat currency deposits.
- Foundation. The BitShares Blockchain Foundation is a non-profit organisation registered in the Netherlands. Founded in 2016, its mission is to promote and grow the BitShares ecosystem.
- Competition. There are plenty of other decentralised exchange platforms competing with BitShares. Check out our guide to decentralised crypto exchanges for more information.
By considering these and other factors, you’ll be able to make an informed decision about whether or not to buy BTS.
At the time of writing, the author holds IOTA and XLM.
Ask an Expert