Altcoin Spotlight: Bitget Token (BGB)
The cryptocurrency world is fluid, and there are many coins that are created every day, and just as many that end up going defunct. Here at MintDice.com, we are committed to customer education and provide basic overviews for any altcoin that breaks the top 100 based on market volume.
This week, we will discuss Bitget Token, which recently appeared on our radar and climbed to position 52 on coinmarketcap.com. Keep reading to learn everything there is to know about this token.
What is Bitget Token?
Bitget token is a utility token used for transactions on the Bitget centralized exchange. It is provided for users in the form of profit sharing and rewards, and all fees on the site are charged in this currency.
Because Bitget is a utility token, it has little use off of the exchange, putting it in the same realm as BinanceCoin.
Bitget Token was launched in 2021 and has undergone many updates in recent years to ensure the best functionality for all users of the Bitget platform. It is a scalable token, and developers state that as the platform grows, so will the market volume of the token.
How Does Bitget Token Work?
Bitget Token is an ERC-20 token built on the Ethereum blockchain. It uses the POS (proof-of-stake) consensus mechanism and can be stored in any ERC-20-compatible wallet.
Bitget Token can be purchased on the Bitget exchange in a variety of trading pairs. Those wishing to use the platform can often trade a digital version of their local fiat (such as USDC) for Bitget Token or BGB. They can then use this token to make other trades on the platform, earn rewards, join liquidity pools, and more.
One of the main draws of the Bitget platform is they are one of the few cryptocurrency platforms that offers crypto derivatives. A highly risky and volatile form of trading, Bitget currently has the third-largest crypto derivatives market in the world.
Related: The Most Common Token Standards You Should Know
How Many BGB Are in Circulation?
As previously mentioned, the number of BGB are slated to increase as the Bitget platform grows in trading volume. That being said, as of the writing of this article the current number of coins in circulation is 1.4 billion. The developers have revealed that the maximum number in circulation is 2 billion.
Who Created Bitget?
Bitget started as a social trading platform in 2018, allowing users to make peer-to-peer trades. In 2021, this trading model was abandoned in favor of a centralized exchange model, which would give it more functionality. This is when the BGB token was created.
Bitget was founded by former CEO Sandra Lou and her team and is based in the Seychelles. She started the platform after being introduced to Bitcoin in 2016 and becoming an investor herself. With experience in the fiat banking industry, she wanted to bring similar benefits to the crypto world. In 2024, she stepped down and Gracy Chen took her place as CEO.
Crazy enough, Bitget is licensed for business in both the U.S. and Canada and complies with all KYC and AML requirements of both countries. In order to use the platform, you will have to verify your identity, which is typical of most centralized exchanges.
Related: What You Need to Know About Crypto Sanctions and Compliance
Where Can You Buy BGB?
Currently, BGB is only for sale on the Bitget app, meaning you will have to make an account there if you wish to use it. As far as we know the token cannot be purchase on any other centralized exchange or app, though it may be available in some decentralized exchanges via peer-to-peer trades.
Is Bitget a Good Exchange?
Bitget is a centralized exchange, meaning it is overseen by governing bodies of the various countries where it operates. This means it is a safer exchange than a decentralized one, but your trading activity will be reported to the government.
We haven’t used the Bitget app, but it is well known in the cryptocurrency world due to its derivatives offerings. So, if you want to trade derivatives, it might just be the exchange for you. Additionally, they offer customer service, meaning even those new to the industry will likely be able to use the platform with ease and get help when needed.
Should You Buy Bitget Token?
While Bitget Token is a licensed utility token, we generally don’t recommend buying it unless you plan to use the Bitget exchange. This is because the token has very little value off the exchange and is likely not an investment-grade token.
That being said, if you do plan to use the exchange, you might want to buy a little because you’ll save money on trading fees. Additionally, if you are a long-term customer, you will earn BGB, which can be used for some of the functions on the platform. Just remember that these tokens are only useful on the platform and won’t do you much good anywhere else.
We should also mention that currently, most Bitget token is held by whales on the platform—meaning you are unlikely to ever hold a controlling share. Regardless, the token does have functionality so if you purchase some it won’t be wasted.
If you are looking for a cryptocurrency to invest in long term, we recommend checking out a coin like Bitcoin or Ethereum, which are known to increase in value over time. Just remember that any cryptocurrency investment is risky and that you shouldn’t invest on a whim. Take the time to discuss your possible investment with someone you trust to ensure you are making the best decision possible.
Overall, there are worse tokens out there than BGB or Bitget Token, but it isn’t the most useful token either. So, if you are planning to use the Bitget exchange, it is likely worth it to buy some coins, otherwise, if you are just looking to invest, we recommend investing elsewhere.
You May Also Enjoy: The Best Bitcoin ETFs to Invest In
