How to Trade Basic Attention Token (BAT): A Step-by-Step Guide

Comprehensive Guide to Trading BAT in 2021

23 Min Read
Last Updated July 23rd 2021

Are you interested in learning how to trade Basic Attention Token  but unsure what to do or even where to start? Well, this guide might be precisely what you need!

Basic Attention Token (BAT) is the native utility token of the Brave ecosystem - which comprises a privacy browser and a digital advertising network. This popular digital token was launched in May 2017 and has been demonstrating a solid case of real-world application for the cryptocurrency arena ever since. 

If you want to try your hand at trading this digital asset, then our How to Trade Basic Attention Token Guide is designed to provide you with all the information you need. 

We will discuss the basics of cryptocurrency trading, the strategies you can use, and how you can get started by finding the right online crypto broker for your BAT trades. 

If you want to trade BAT quickly and easily, with 0% Commission, check out eToro Exchange!

Contents:

How to Trade Basic Attention Token in 5 Steps

To trade Basic Attention Token, the first step is to open an accout with a regulated exchange, depost funds, select BAT from the platform list, and lastly Buy BAT (go Long) or sell BAT (go short).

Step 1: Open an account with an exchange 

Step 2: Funds your crypto account

Step 3: Choose how much BAT you want to trade 

Step 4Buy BAT (go long) or sell BAT (go short)

Step 5: Confirm the trade

What is Basic Attention Token Trading?

The Brave platform was created to remedy the problems that are currently facing the internet advertising industry. To achieve this, the network uses BAT tokens - allowing users to be paid for their 'attention' to ads served online. 

This makes BAT one of the most commonly used tokens in the Defi sector. Compared to other Ethereum-based digital assets known for their speculative nature, this utility gives Basic Attention Token an edge in the market.

When thinking of how to trade Basic Attention Token, the process is similar to that of any other asset - such as stocks, commodities, or forex. You will have to  speculate on the future value of this coin and place trades to make a profit. 

That said, the key to successful BAT trading lies in identifying the different market forces in play. Being a cryptocurrency, this could mean the rate of adoption, regulation, mining, and more. However, all these components ultimately boil down to supply and demand. 

If there is a high demand for BAT from buyers in the crypto market - then it will lead to an increase in its value. Conversely, if there are more sellers eager to sell their BAT coins, the price is likely to decrease. As a trader, if you are able to correctly predict this future market sentiment, you will be able to make profits from your BAT trades. 

Here is an example that illustrates how trading BAT will work practically:

  • Let's suppose that you are ready to trade Basic Attention Token against the US dollar. 
  • This means you will be exchanging BAT for USD - represented in the crypto markets as BAT/USD.
  • When you are placing the trade, BAT/USD is priced at $0.50.  
  • You speculate that the value of BAT is about to go up. 
  • Therefore - you place a buy order on BAT/USD worth $1,000. 
  • Two days later, the price of BAT/USD increased to $0.60. 
  • This translates to a gain of 20%. 
  • Taking advantage of this increase, you sell your BAT coins. 

In this example, your profit amounts to $200 - which is 20% of your $1,000 stake. 

However, had the price of BAT gone down after you placed the buy order, this trade would have resulted in losses instead. 

For this reason, you need to be cautious when thinking of how to trade Basic Attention Token. You will need to spend some time learning about how the market works and what strategies you can use in order to be successful in BAT trading. 

With this in view, let's consider some of the fundamentals of trading Basic Attention Token via a cryptocurrency broker. 

How Does Basic Attention Token Trading Work?

Cryptocurrencies might still be considered a relatively new financial instrument. However, the concept of trading them remains the same like any other asset. 

Therefore, those of you that are familiar with trading stocks or other assets will not have any issue finding your way around the BAT investment scene. 

On the other hand, if you are new to this arena, you need to familiarize yourself with the basics first - which we will discuss below. 

Basic Attention Token Trading Price Movements

As you might know, the value of financial assets will constantly change in the market - driven by its supply and demand. In the case of cryptocurrencies like BAT, this price movement can be very drastic. 

Crypto assets have been known to shift their value multiple times throughout the day - sometimes even in double digits. This gives cryptocurrencies the reputation of being highly volatile. 

Due to this volatility, the value of BAT will keep fluctuating. As such, you might see the price of this digital token quoted slightly differently across competing cryptocurrency platforms. 

As you might know by now, this is common and will have no implications on your ability to profit from your trades. 

Don't Miss: Basic Attention Token Price Predictions

Basic Attention Token Trading Pairs

Similar to forex, cryptocurrencies like Basic Attention Token are also traded in pairs. However, in this case, you will have the option to trade BAT against a fiat currency or a cryptocurrency. 

In a 'crypto-fiat' pair, you will be speculating on the value of BAT against a fiat currency like US dollars or euros. Usually, such pairs will be represented as BAT/USD, BAT/EUR, or BAT/GBP. Depending on your chosen cryptocurrency provider, you will also have access to other markets such as BAT/JPY or BAT/AUD. 

Whereas in a 'crypto-crypto' pair, you will be exchanging Basic Attention Token for another cryptocurrency - like Bitcoin, Litecoin, or Ethereum. However, this can be challenging for a beginner trader because you will have to consider the future prices of both cryptocurrencies. 

Unless you are well-versed with the respective crypto markets, this can be quite a challenging undertaking. In comparison, you might find it easier to predict the future exchange rate of a BAT-fiat pair. 

Long or Short-Term Trading

One of the first aspects you need to consider when thinking of how to trade Basic Attention Token is to evaluate your financial goals. For instance, if a  long-term investment is what you have in mind, you can decide to own units of BAT. 

In this 'buy and hold' strategy, you will be taking ownership of BAT coins and holding them for an extended period of time. Long-term traders often tend to hold on to their assets for at least three years. 

If your chosen asset is performing well in the market, a long-term strategy can lead to significantly more favourable returns. For instance, BAT was launched in 2017 at $0.1566 per coin. In a matter of four years, the price of this token has increased to $0.5670 (value at the time of writing) - translating to a gain of 260%. 

Alternatively, if you are seeking immediate profits, then you can choose a short-term trading strategy - like day trading or swing trading. However, this approach will require you to have a sound understanding of how the crypto market works so that you can make swift trading decisions and place the appropriate orders. 

New traders might find this a tough undertaking at the beginning. As such, you might want to start your trading journey with a long-term strategy. 

That said, ultimately - which method you choose will be determined by your financial goals and risk appetite. 

Check Out: 14 Reasons Why You Should Invest in BAT

Trade and Own Basic Attention Token

As we mentioned earlier, when you have a long-term goal in mind- you will be choosing a 'buy and hold' strategy. Since you will be buying and owning BAT coins, you will need to find a reliable broker that can give you cost-effective access to Basic Attention Token. 

In that regard, it is best that you always choose only a regulated broker for trading Basic Attention Token. For those looking  for one, eToro is a highly viable option. This social trading platform caters to more than 20 million registered users from across the world. 

More importantly, eToro is regulated by three of the most respectable financial authorities - notably the FCA in the UK, ASIC in Australia, and CySEC in Cyprus. You will also be glad to know that you can buy BAT coins via eToro without having to pay any commission and that you can store them within your portfolio at no extra cost. 

Whether you are a beginner or an experienced trader, you will find that eToro is both intuitive and user-friendly for your trading requirements. 

Basic Attention Token Trading 

In short-term trading, you will be speculating on the price of Basic Attention Token without taking direct ownership. This is achieved using derivative instruments called cryptocurrency Contracts for Differences (CFDs). 

BAT CFDs only track the market price of the digital asset, allowing you to speculate on its future value without having to own them. In addition, Basic Attention Token CFDs also allow you to trade in both bullish and bearish markets. 

Apart from all this, perhaps, the most significant advantage of trading BAT CFDs is that you will be able to apply leverage on your trades - which can magnify your profits. 

However, CFDs have the reputation of being a highly risky trading instrument and are thus prohibited in a small number of countries. If you live in the UK or the US, there is no way to access crypto CFDs legally. 

Nevertheless, if you live in any other part of the world, it is likely that you can trade BAT CFDs legally. The only thing is to make sure you only access them through a regulated broker. 

How to Trade Basic Attention Token Online - Setting up a Trade

When learning about how to trade Basic Attention Token, one of the most important things is to understand what trading orders are. These are instructions you leave on your chosen brokerage site so that the broker can execute your BAT trades for you. 

To get you started, here we have some of the most utilized orders you will use when placing Basic Attention Token trades online. 

Buy or Sell Order

You will get started by telling your broker whether you want to buy or sell Basic Attention Token. 

  • If you speculate that the price of BAT will rise in the future, you will open your position with a buy order. You will then use a sell order to exit the market. 
  • If you want to profit from falling prices of BAT, you will use a sell order to enter the market and close your trade with a buy order

No matter which order you use first, you will need the other to exit your position. 

Entry Price

As we discussed earlier, the price of Basic Attention Token keeps changing throughout the course of the day. As such, instead of merely using a buy or sell order, you should also consider at what price you want to enter the market. 

If your strategy requires you to open your trade at a specific value, you will have to use a limit order. This will allow you to tell the broker at which price you prefer to buy or sell BAT. 

However, in case your specified price level is not met - your order will remain open until you cancel it manually. 

The alternative is to use a market order, allowing you to buy or sell BAT at the quoted price. However, you should be aware that, due to the increased volatility, you might end up with a marginally different value after completing the order. 

For instance, if you placed the market order to buy BAT at $0.5050 - after the broker executes the order, you might notice that you purchased the digital tokens at $0.5040. This is called 'slippage' - and is unavoidable in the crypto markets. 

Exit Strategy

Aside from your entry price, you should also think about how you will be closing your Basic Attention Token trades. 

For every BAT trade you open, you can use the following orders:

  • Take-profit order - This will allow you to close the order at a profit if the market moves as per your prediction. You can specify what your profit target is, and the broker will automatically exit your BAT position once this has been achieved. 
  • Stop-loss order - This order is used to control your losses if the market is headed against your prediction. As with the take-profit order, you will be specifying how much you are willing to lose, and the broker will automatically execute the trade as per your instructions. 

Understandably, it can be confusing for a beginner trader to figure out how to use these multiple trading orders on a single position. 

Let us help you grasp this with an example. 

  • Let's suppose you want to buy BAT coins that are currently trading at $0.5200.
  • To open your trade, you create a buy order on this digital asset. 
  • However, you wish to open your position only when the value of BAT increases to 0.5500. 
  • Therefore, you set up a limit order at $0.5500
  • You have a profit target of 5% on this trade and want to limit losing more than 2%. 
  • As such - you create your take-profit order at $0.5775 - which is 5% above your entry price. 
  • Additionally, you also issue a stop-loss order at $0.5390 - 2% below your entry price. 

By placing a take-profit and stop-loss order at either side of your entry price, your broker knows which position to execute, regardless of how the market moves. 

Whichever the scenario is, the respective trading order will be carried out as per your instructions - securing the profit or preventing your losses. 

How to Make Money Trading Basic Attention Token

When trading Basic Attention Token, your final goal is to make money. Although researching BAT coins and understanding the market can play a vital role in determining your success - there are some other factors that can help you amplify your profits. 

In this section of our How to Trade Basic Attention Token Guide, we will discuss what aspects can influence how much profit you make by trading BAT. 

Stake 

Every BAT trade you place will require you to specify your stake - which is the amount you are ready to risk on this asset. 

The more you are willing to stake, the more profit you will be able to make. However, this is not to say that you should always choose a high amount. This is because, in case you encounter losses, it will also be proportional to how much you risk. 

So, how do you decide your stake amount? Many a time, this will be dictated by your financial standing and risk appetite. That said, if you want to have a clear strategy in mind, you should devise a bankroll management method. 

  • For instance, you can self-impose a limit on how much you stake on each of your trades. 
  • To give you an example, many traders prefer never to risk more than 2% of their available trading funds on a single position. 
  • So, if you have access to $1,000, you will not stake over $200 on any BAT trade. 

This way, you can keep your emotion out of trading decisions, no matter how promising the market might appear to be. 

Basic Attention Token Trading Leverage

Earlier in this guide about short-term BAT trading, we introduced you to the concept of CFDs and applying leverage to your positions. This is another strategy that can significantly boost your gains. 

In simple terms, leveraging allows you to increase your stake by borrowing funds from your broker. Allow us to explain this better. 

  • For instance, suppose you have $100 in your trading account. 
  • By applying leverage of 1:10, you will be able to increase your stake to $1,000. 
  • If you make a profit of 5% in this trade - this will get you $50 in gains. 
  • Without leverage - your profit would have been only $5. 

However, the most important detail that you shouldn't overlook is that leveraging can also amplify your losses. This is why leveraged CFDs are prohibited in many countries, as we discussed earlier. 

That said, there will be unregulated exchanges enticing you with leverage as high as 100x. However, this will only invite additional risk and is best avoided. 

Fees to Trade Basic Attention Token Online

Many beginners assume that the fees charged by your broker have no effect on the profitability of your BAT trades. On the contrary, this can affect not only the amount you will end up staking but also how much profit you will be able to keep for yourself. 

With this in mind, here are the most common fees you will find listed on brokerage platforms. 

Basic Attention Token Trading Commission

The trading commission is a common fee that will be charged when you buy or sell Basic Attention Token. On most brokerage platforms, this will be charged as a percentage of the stake you are putting up. 

For example:

  • Let's suppose that your chosen broker imposes a commission of 2%. 
  • This means that on your $1,000 stake - you will have to pay $20 to your brokerage platform for facilitating the trade. 
  • Then again, when you are closing your position - you will have to pay this commission once more. 
  • So if your BAT position is worth $1,200 at the time of selling, your commission will come to $24. 
  • In total, you will end up paying $44 in commission on this single trade. 

Depending on your chosen brokerage, this commission can be significantly higher or lower. 

Having said that, if you are thinking about how to trade Basic Attention Token without having to pay this fee, you can do so by choosing a commission-free broker like eToro. 

Basic Attention Token Spread

Other than commissions, you might also have to pay spread on your BAT trades. In the financial markets, the spread refers to the difference between the two prices of your chosen asset - the bid and the ask price. 

In other words, in order to reduce this spread, you need to look for brokers that offer a tighter gap between the buy price and sell price of Basic Attention Token. 

Moreover, you need to remember that any profit you can keep for yourself on a BAT trade will be calculated only after accounting for the spread. For instance, if your broker charges a spread of 1% on Basic Attention Token, this means that you will open your position at a 1% loss. 

That is to say, your profit on any BAT trade has to be a minimum of 1% in order for you to reach the break-even point. 

Other Basic Attention Token Trading Fees

After considering the trading commission and spread charged by your chosen brokerage platform, you should also look into the following fee types. 

  • Deposits/Withdrawals: Are there any transaction costs involved when you process your payments and withdrawals on the platform?
  • Inactivity Fee: Will you be charged an 'inactivity fee' if you do not meet the required trading activity?
  • Overnight Fee: When trading with BAT CFDs, do you have to pay an 'overnight fee' when keeping your trades open overnight?

All these fees can make a dent in your final take-home profit. Therefore, it would be wise to spend some time finding a platform that can offer you the right features in a cost-effective manner. 

Read Also: Could Basic Attention Token Be a Millionaire-Maker Coin?

How to Trade Basic Attention Token 2021 - Step-by-Step Walkthrough

In this final section of our How to Trade Basic Attention Token Guide, we will offer you some guidance on how you can get started with your first BAT buy or sell position today!

Step 1: Choose a Basic Attention Token Trading Site

When thinking of how to trade Basic Attention Token, make sure to do your research to ensure you only use the most reputable providers available online. However, this step can be confusing and overwhelming for a beginner - considering the dozens of options available. 

Some things that you should keep in mind when looking for an online BAT broker are:

  • Regulation: What is the regulatory standing of the broker?
  • Fees: How much is the commission, spread, and other trading fees?
  • Payments: Which payment methods are accessible by the broker?
  • Minimum Deposits: What is the minimum stake required to start trading BAT?
  • BAT Pairs: Which BAT trading pairs are available on the brokerage platform?
  • Trading Platform: Is the trading platform adaptive to beginners?
  • Mobile Application: Is there a mobile app that allows you to place BAT trades on the go?

After taking into account these factors, our research team found that eToro is one of the best brokers you can choose, regardless of your trading experience. It is highly regulated and offers commission-free access to thousands of assets - including cryptocurrencies like BAT. 

Moreover, if you are a beginner, there are a plethora of educational resources that can guide you through the process of how to trade Basic Attention Token. 

Step 2: Open a Basic Attention Token Trading Account

When you know which broker you want to use, you can open a trading account with the provider. You can do this by filling in your email address and setting a password. You should also provide some personal information, such as your contact details and date of birth. 

If you have chosen a regulated broker, you will also have to complete a KYC process - which will require you to submit a government-issued ID like a passport or driver's license. 

You will also have to submit a document such as a recent utility bill or bank statement as proof of address. 

Step 3: Add Funds

To start trading Basic Attention Token, you need to have sufficient funds in your brokerage account. Brokers like eToro offer numerous payment methods to choose from. 

You can deposit funds using a debit or credit card or an e-wallet like PayPal, Neteller, or Skrill. You will also have the option of a wire transfer- but this can take more time to arrive. 

Step 4: Choose a Basic Attention Token Trading Market

The next step is to choose the BAT pair you want to trade. As we discussed earlier, you can opt between a BAT-fiat pair or a BAT-crypto pair. 

To find your chosen pair, you can simply search for it on the brokerage platform. For instance, if you want to trade BAT against Bitcoin, you can enter BAT/BTC to find the respective trading page. 

Step 5: Place Basic Attention Token Trade

Finally, you can place your trade using the orders that we discussed earlier. Specify whether you want to buy or sell BAT and your limit/market order. 

Do not forget to set both take-profit and stop-loss orders to automate your exit strategy. 

Finally, after verifying everything, you can confirm the order to complete your Basic Attention Token trade.

How to Trade Basic Attention Token Guide - The Verdict

In our How to Trade Basic Attention Token Guide, we have provided you with all the necessary information you need to get started with your BAT investment journey

To recap - you will need to choose the right BAT pair, decide on a strategy, and use suitable trading orders after considering your stake and risk exposure. 

Most importantly, it is imperative that you only use regulated brokers like eToro - which offers commission-free and secure access to Basic Attention Token. 

eToro – The Best Platform to Trade Basic Attention Token

eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

FAQs

How many Basic Attention Tokens are there?

There is a total supply of 1.5 billion BAT tokens.

Which is the easiest way to trade Basic Attention Token?

If you are a beginner, you can try the 'buy and hold' strategy - which means investing in BAT coins for a long time. When choosing this method, make sure you buy BAT only from a regulated broker like eToro.

Can you trade Basic Attention Token for money?

Yes, you can speculate on the future price of BAT tokens and place trades. If your prediction is right, you will make a profit.

Are BAT CFDs available in the US?

No, you cannot trade any cryptocurrency CFDs legally in the US.

What is the maximum leverage I can apply to BAT trades?

You can access leverage as high as 500x on some crypto trading platforms. However, it is all but certain that these are unregulated entities. As such, it is best to use a regulated broker like eToro - which gives you legal access to BAT CFDs. 

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