Exchange Tokens: How do these cryptocurrencies work?
Exchange Tokens are native cryptocurrencies of exchanges. They offer benefits to those who have them, like trading fees discounts.
What is Exchange Token?
Exchange tokens are cryptocurrencies originally from exchanges, the cryptocurrency brokerages. They are utility tokens because they have, as their name implies, a utility. Those who own exchange tokens can earn discounts on transaction fees at the broker, take part in votes for what's new, and even earn income on the value of the token.
Imagine these three scenarios:
Scenario 1: You have a store VIP customer card. With this card, you receive discounts, exclusive promotions, and even access to closed events.
Scenario 2: You are a club member and can participate in votes to create new products or services and even cancel current products. You also receive exclusive discounts on events, games, and promotions.
Scenario 3: You buy a membership title for a club that a few years later has grown, become well-known in the city, and now has a lot of interested people wanting to join. That title you bought is already costing 4 times as much, so you decide to sell it at a 300% yield.
Exchange tokens are these four scenarios in one, with exclusive benefits, governance, and rewards.
Does this mean that all these category tokens ensure this? No. The utilities of the asset will depend on the native exchange, as each offers different solutions. Some are limited to discounts on transaction fees, others may offer discounts on streaming subscriptions and even exclusive credit cards.
Another important variant is the issue of valuation. Just like any other asset, whether cryptocurrencies or stocks, the appreciation will depend on the market, the growth of the exchange itself, and the blockchain protocol token allocated. Don't believe in assured returns. This goes for any risky investment, okay?
How do I get these exchange tokens benefits?
Usually, you just need to have the token in your exchange and the discounts will be automated. For other benefits, it is important that you look for full information on the exchange. We also advise you to read the whitepapers carefully, which in short, is a description of the coin project, with details on how it will be offered, the burn rate, and the benefits.
What's the difference between cryptocurrencies and exchange tokens?
Both are tokens and are blockchain technology-generated assets. What makes one different from the other are its uses. Cryptocurrencies are payment tokens classified, as they can be used as the currency of exchange, such as the dollar and euro. Exchange tokens, on the other hand, are utilities classified and go beyond payments, which does not exclude their use of them. You can pay with something using this type of token, provided the recipient accepts it.
Recently, with the growth of the exchange on a global scale, buying their tokens has become a good long-term investment opportunity for many people. If you are thinking of taking this ride, choose from a brokerage company that you trust and believe will continue to grow. Study the protocols and don't bet all your savings on just one token, okay?
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