With the increasing popularity of crypto currencies, trading is undergoing a sea change. As of November 2019, the total number of blockchain wallet users has increased to 29 million from 18 million wallet users in the previous year, which shows an impressive growth of about 61%. In spite of their popularity, the holders of cryptos are unable to trade in the regulated markets of commodities, shares or indices without exchanging the cryptos with fiat money. Currency.com addresses this area with the concept of tokenized securities.
At the outset it is necessary to know what securities are? Securities are any financial asset, e.g. commodities, shares, indices, bonds etc. which can be traded in financial markets. However, the legal definition of securities differs from country to country.
What then, is the meaning of tokenized securities? When digital distributed ledgers called blockchains are used to maintain shareholder balances instead of the age-old practice of spreadsheets, then the security is said to be tokenized. Hence, this process of issuing digital tokens for the respective financial instruments on a blockchain is “tokenization”. However, when it comes to trading and the consequent profit or loss for the investor, it is not much different from trading directly on financial instruments.
Tokenized securities and cryptocurrency:
It is then fair to ask that if trading directly in financial instruments and that with tokenized securities is not different, then why go for tokenization at all? The answer lies in the fact that an investor holding crypto currencies like Bitcoin, Ethereum etc. cannot trade in liquid financial markets without having to first swap their cryptos for fiat. Every swap costs money. Currency.com has come up with a unique technology driven trading platform to address this problem of investors who were looking for a streamlined system of directly trading with crypto currencies. As both tokenized securities and crypto currencies use blockchain technology, it is no longer necessary to convert the cryptos to fiat currency for trading. The investor is issued a token, which is assigned to a financial instrument and tracks its price movement. Therefore, the investor can diversify his or her portfolio without the necessity of swapping cryptos to fiat.
Currency.com the leader
Currency.com is the first of its kind to provide a regularized tokenized security trading platform. Its mission is to democratize the world of investment by using state-of-the-art technology so that investors across the globe can contribute to the global economy. It boasts of a dedicated and highly professional team, which creates and maintains an investor-friendly financial ecosystem partnering with Capital.com, a reputed trading platform worldwide.
Advantages of Trading with Currency.com
- A regularized tokenized trading platform
Many countries have regulations for trading in tokenized securities. However, the problem is that these regulations are designed to accommodate the complexities of cryptocurrency within the existing conservative legal framework. Hence, the investment in cryptos is fraught with regulatory roadblocks. So, the need of the hour was to come up with a regulatory system where it is built up from scratch instead of being an extension to the conventional framework. The main advantage of trading in tokenized securities is that investors consider they are secure as they are heavily regulated. The pros are that tokenized securities have interoperability, 24×7 trading, enhanced liquidity, etc.
Belaraus is the first country, which implemented a regulatory environment that supports trading in crypto currencies. Operating outside of the EU, Belaraus is not hindered by the decade old regulations that are prevalent in the EU. Moreover, in order to attract business in trading in crypto currencies, it has implemented attractive tax incentives. It has also in place Anti Money Laundering (AML), and KYC laws and stringent customer data protection measures, which are very important for cryptocurrency trading. Hence, operating from Belaraus makes Currency.com a provider of regularized tokenized trading platform.
- Ease of operation
Trading with tokenized securities is as easy as trading in any digital interface. Currency.com is an award winning tokenized securities platform and has designed a user interface to make trading fast and easy. It starts with a simple registration process where the investors can fill in the required data by downloading the iOS or Android application from their website. Then the investor can create his/her account and start trading by depositing crypto or fiat currency. Traders then buy tokenized securities with or without leverage. Currency.com executes hedging with the help of Capital.com. Thereafter, the investor sells the tokenized securities and withdraws crypto or fiat currencies.
Currency.com offers to its users the facility of margin trading in crypto currencies or traditional financial instruments with leverage as high as 1:100. In the user interface, the trader is provided with an option to apply leverage. Leverage magnifies the volatility but also magnifies the opportunity of a profitable transaction for the experienced investor.
- Easy deposit and withdrawal features
Deposit and withdrawal is a cakewalk with Currency.com. The user interface is extremely user friendly and very simple to use. There is a wallet section available under the main menu, where by a simple click of a button, the investor can deposit cryptocurrency or fiat currency. The interface shows clearly the balance in cryptos or fiat. Similarly withdrawals are also accomplished with a click using the same interface. Cryptocurrency trading can be done using Litecoin (LTC), Ethereum (ETH) or Bitcoin (BTC).
- Pocket-friendly fees structure
Currency.com provides a fee structure, which is fair and the lowest in the industry. The withdrawal fee for cryptocurrency charged by curreny.com is about 40% lower than the industry.
Currency.com has provided a secure and user-friendly trading platform for the investor, who would like to operate in the global trading market and gain accessibility to the top class assets without going into the cumbersome process of converting cryptocurrency to fiat currencies. It also provides the best-regulated ecosystem for trading in cryptocurrencies. If you search the web and read some of the Currency.com reviews and ratings available you can see that all of them say only good things about this exchange. Currency.com maintains a separate bank account for client’s funds, which cannot be used even for margin trading to fund operations. It uses a clean interface, which is transparent and understandable even to beginners.