What are exchange tokens?
Cryptocurrency is digital/virtual currency that first started making waves back in 2009 with the introduction of Bitcoin. The first known crypto currency exchange company was bitcoinmartket.com, which started back in 2010. Once cryptocurrency started making a bigger name for itself, and different types of cryptocurrency was being created, the idea of exchanging these currencies came to the forefront. And now on top of this, exchange tokens are available for purchase from users. These tokens are user friendly and offer a variety of incentives for its users. Some of which are reduced fees and rates, and having access to incoming airdrops. This article will be speaking to exchange tokens within the companies of Binance, Burstex, Kucoin and Huobi Global.
The Binance exchange token is the Binance coin, or BNB. The incentives that come with BNB in particular are reduced and discounted trading/exchange fees, listing fees as well as any other fees associated with Binance. ICO’s can also be invested in through the use of this exchange token. Other incentives for collecting these tokens are the likes of dust conversion, IEO lottery and a tier system that can potentially give you VIP status, which then can offer even more discounts on fees and rates. As DeFi (Decentralised Finance) is getting popular, Binance has helped a lot of DeFi projects raise funds as part of their IEOs.
Burstex is a new Cryptocurrency exchange that has an exchange token called Burst or BEX. Holding the tokens is like owning shares on an exchange since you will get dividends based on your holdings and the exchange’s profits. It is a crowd fund owned exchange and it is totally decentralised. Other exchanges like Binance, Huobi and Kucoin are centralised exchanges but Burst is a token for a decentralised exchange. If you think investing in Cryptocurrencies are risky, then Burst may be a safer option because it gives you dividends like shares of a company.
The Huobi exchange token quickly launched soon after Binance and is considered to be in the top 3 powerhouses of cryptocurrency exchange tokens. One incentive of obtaining a Huobi token is that it allows its users to participate in the Huobi Autonomous Digital Asses Exchange (HADAX). This asset allows its users to vote for the specific coins that they would like to see listed on Huobi Global’s exchange. If the currency that the voter chooses is selected, they can win free coins based on the fact that they chose the winning currency through their vote. Huobi is also known for creating a tier system, similar to Binance, when it comes to their fee discounts. By using a subscription method, the more Huobi tokens you have, the lower the exchange fees will be.
Along the same lines as its competition, the Kucoin has an ERC20 token known as Kucoin Shares. Kucoin Shares are considered to be easy to use and they also have a powerful API. They, too, deliver incentives to its users such as offering 50% of the exchange’s profits as dividends and other perks of that nature. According to Kucoins website, every 1 in 4 crypto holders use Kucoin Shares. Just by simply holding onto the coin, users can make a passive income.
All of the listed companies above offer some sort of incentive when acquiring their respective exchange tokens. Whether you are looking for premier access, discounted fees, or partaking in community style activities through said company, it seems as though cryptocurrency exchange tokens are worth investing in. Whether you choose Binance, Burstex, Huobi Global, Kucoin or a combination of the 4, cryptocurrency exchange tokens have benefits worth taking advantage of.