- August 13, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Cryptocurrency trading has become a popular pastime and, at times, a lucrative revenue stream for individuals worldwide thanks to the availability of user-friendly mobile apps that facilitate access to cryptocurrency for ordinary people. Moreover, with the advent of tokenised assets, savvy crypto traders can now also profit from more traditional stocks with the same advantages as cryptocurrencies.
The tokenised asset market has evolved to the point where tokenised assets representing stock in trading app Robinhood are available for exchange on the crypto exchange platform StormGain. That’s right! You can trade shares of the trading platform named after the man in green tights as digital tokens on a cryptocurrency platform. And strangely enough, that could end up earning you much more than using the Robinhood platform directly.
Robinhood is currently the hottest new stock on the market. Share prices soared by almost 50% on Wednesday after the company’s IPO. Despite a smaller correction later in the week, Robinhood remains one of the market’s most exciting opportunities, thanks to its appeal to institutional investors and younger retail traders as a favourite of online trading communities. But why trade Robinhood as a tokenised asset?
The old saying on the stock market is “buy low, sell high”. That same trading model can be used for cryptocurrency trading, but there are a few key differences. First, the crypto trading market is famously volatile, which makes it possible to make quick fortunes on the dramatic movements of Bitcoin, Ethereum, Ripple and the wide range of altcoins, albeit with some risk. Another advantage of crypto trading is the cutting-edge blockchain technology behind it. As a result, it’s fast, secure, private and free of the red tape and middlemen that characterise the traditional world of finance.
But there’s a way to both manage risk in crypto trading and get a foot in the stock market, all the while keeping crypto trading’s advantages of speed and tech-savviness: tokenised stocks and commodities.
Tokenised stocks and commodities are digital tokens pegged to the value of a financial instrument on the stock market, such as company stock and valuable metals like gold and silver. The token price (in USDT) rises and falls to match the value of the stock or commodity in the global stock market. Not every crypto exchange offers tokenised assets, but the best ones will feature at least a few options. For example, StormGain, a popular crypto exchange known for its user-friendly interface and low fees, features tokenised stocks in tech companies, as well as gold and silver commodities.
The exciting potential of blockchain-based digital assets is the opportunity for crypto traders to profit from traditional trading instruments such as company shares and precious metals, lending stability and flexibility to their portfolios.
Trade Robinhood, Tesla, and other top tech companies as crypto tokens
The world of cryptocurrency and big tech is closely related, so it is no surprise that the most popular tokenised stocks are tech giants. StormGain’s tokenised stock offerings include Robinhood, Apple, Google, Tesla, Virgin Galactic and Amazon, as well as Axie, a blockchain-based multiplayer game inspired by Pokemon.
The new crop of crypto traders are tech-savvy digital natives, familiar with the products of these
companies and the crypto-boosting activities of personalities such as Elon Musk, a strong influence in the blockchain world.
If you’re keeping up with the tech world, then why not leverage that knowledge into some profit by trading tokenised stocks in Apple, Tesla, and co.? Previously, traders who preferred crypto were put off by the idea of maintaining both a crypto trading account and a stock market trading account, but tokenised assets allow trading in top tech from your favourite crypto platform.
The real digital gold
Tokenised company stock allows crypto traders to profit from their tech industry knowledge, but tokenised commodities are also available. These digital tokens are tied to the value of precious metals such as gold and silver. Although Bitcoin has often been called ‘digital gold’, it is much more volatile. A digitised asset pegged to the value of gold or silver allows crypto users to benefit from tried-and-true ‘safe haven’ assets that hedge against the volatility of the crypto market. That way, you can trade and win big on the volatile cryptocurrencies while keeping part of your portfolio in gold as a safe bet.
All in one, around the world
Why trade tokenised assets when you could simply trade stocks directly with a stock market trading app? Ease-of-use is one factor. Why keep track of two separate portfolios, accounts, and all the accompanying rules of each when you could do everything from one? The other reason is that crypto trading platforms are newer and more competitive than traditional financial platforms. As such, they often offer much better perks and rates for traders than the latter. For all intents and purposes, a digitised asset is a cryptocurrency and benefits from all the bonuses for cryptocurrencies offered by the platform.
StormGain, for example, includes tokenised stocks and commodities alongside 40+ digital assets such as Bitcoin, Ethereum, Litecoin, etc. Tokenised assets are treated just like any other asset on StormGain and benefit from the platform’s 0% commission profit-sharing structure and loyalty programme, allowing you to maximise your gains with low fees, bonus funds, and attractive interest rates on gold and stocks, as well as standard cryptocurrencies.
Tokenised assets can also be stored in digital wallets, transferred quickly and privately, and easily exchanged for other cryptocurrencies. This allows you to expand your crypto portfolio with more traditional market instruments while keeping all of the advantages of a blockchain-based asset collection, all easily accessible from a single platform.
Where to trade tokenised stocks and commodities
If you fancy trading in tech stocks or gold in crypto form, you’ll have to check the available crypto platforms to see which ones offer tokenised assets and under what conditions. StormGain, which we have detailed in this article, has an easy 5-second registration process, as well as a demo account to test all the features before committing any funds. Other crypto platforms will vary, but you will want to check for digitised stocks in reputable companies (Apple, Google, etc.) as well as that all-important gold! All in all, dipping into tokenised stocks and commodities will allow you to build a more versatile and resilient portfolio to build profits in the long term, especially if you choose a platform with attractive bonuses.