How to Make Profits from Investing in Security Tokens
Security Tokens are one of the hottest trends in the global capital markets right now. The past year has seen global inflation rates hit record highs as stock markets grappled with liquidity challenges. Amid a barrage of regulatory restrictions, Hedge funds, Banks, and large multinational corporations are scampering towards Security Token Offerings.
Here are some of the various ways that you too can make profits from investing in Security Tokens.
1. Profits from Day Trading
If you can’t afford to stomp up millions, there’s still a veritable avenue for you to make a healthy profit from security tokens. As a day trader, all you need is to buy a relatively small amount of tokens and resell them to other investors at different time intervals while taking advantage of small changes in prices. To do this effectively, you need a STO exchange that offers competitive prices such as Cryptosx.
2. Long-term HODLing:
This is arguably the most veritable way to make profits from any kind of legitimate investment. The potential gains that you can make from compounding the increase in value of your investment cannot be overemphasized.
Just like stocks, security token investors are able to see the value of their holdings rise on the back financial performance of the parent company or the intrinsic value of the underlying assets that back the token.
3. Dividends & Voting Rights
Not only does security tokens allow investors to earn returns on their assets like in the stock markets, its holders also have voting power. This further reiterates that security token holders can have the same benefits as when they hold traditional stocks and other securities.
4. Leverage:
With Security tokens, holders are able to access low-interest loans. After purchasing your desired security tokens from exchanges like CryptosX, you can proceed to obtain loans from blockchain-based platforms such as BlockFi, Abra and Celsius Network etc. These platforms offer loans in various Fiats or cryptocurrencies, with your security tokens as collateral.
Tips For Investing in Security Tokens
- Choose a secure digital asset exchange platform that supports Security token offerings.
- Create your own wallet. As a rule of thumb, you should never store your crypto assets on a Centralized exchange. Wallets like Metamask, and Trustwallet are quite prominent among retail traders. Many experts say that hardware tokens are much more secure.
- Most Importantly, do your own research on the underlying company or assets that backs the token that you intend to purchase. Carry out sound technical and fundamental analysis before you make that final purchase decision.
How to Purchase a Security Token
Digital asset exchanges like Cryptosx now offer companies around the world a standardized platform to raise capital from investors globally, without the regional restrictions of the stock exchanges. Combining the speed, liquidity and security features of blockchain technology with the price stability of the Stock markets, STOs create a whole new dimension of globalized capital markets.
Security tokens provide limitless possibilities for companies to gain unfettered access to funding and for investors to achieve financial freedom.
Step 1- Open an Account with a Digital Asset Exchange
To trade Security Tokens you’ll need to sign-up with a duly-accredited exchange platfrom that offers STOs. — Cryptosx is one of the pioneer digital asset exchanges. It is one of the leading names in the game.
Step 2- Create a Crypto Wallet
Most Security token exchanges require you to have a wallet. If you’re already trading Cryptocurrency, you may already have a crypto-wallet. But if you don’t have one, you’ll need to create for one. Typically, a wallet is where you keep your digital assets as well as your unique identifiers and credentials. Some popular wallet choices include Dapper, TrustWallet and MyEtherWallet, Metamask.
Step 3- Choose Your Desired Security Token
Once you have gotten a wallet, you can then proceed to choose your desired Security Token. If you’d like to invest in real-estate, First Shot Center security token is a great token to invest in.
Step 4- Deposit Funds
To purchase a security token you have to transfer some money or cryptocurrency to the crypto exchange who will then issue some tokens to you instantly. You can either pay with your Debit/Credit Card, Bank transfers or with any supported Cryptocurrencies like Bitcoin, Ethereum, Litecoin etc.
Final Thoughts
Do you remember indifference and pessimism that marked the early days of Bitcoin? Well, a lot of people regret it now. Security Tokens have presented yet another chance to explore a new world of opportunities on the journey towards financial freedom.
Don’t miss this boat. You can become an early adopter by signing up on Cryptosx and grab the chance to invest in an array of security tokens.
