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What you need to know about Tokenized Stocks
Tokenized stocks are collateral-backed representations of shares traded on stock exchanges. This means their prices are pegged on a 1:1 basis to their traditional counterparts and when there’s a rise in the price of the latter, their prices also increase.
What does holding Tokenized stocks mean for you?
For you as a trader, when you own tokenized stocks, you get all the economic benefits that come with owning shares of that company. For example, if you had purchased token TSLA stocks prior to the 25th of October, 2021, your investment would have risen by greater than 12% that week. However, because Tokenized stocks are only derivatives of traditional stocks, you do not get to participate in the legal aspect that comes with owning shares. For example, you don’t get to sit in on stakeholder meetings, have access to legal documents of the company or voting rights. The good news is that if you’re a regular trader, you do not need all these as the most important thing to you is growing your wealth.
Why should you invest in Tokenized stocks on Buycoins?
Fractional quantities - The shares offered by most companies are worth a lot of money and purchasing even 1 share of them can be quite difficult for the average person. For example, 1 share of AMZN currently goes for over $3,000 (approximately ₦1,725,000) which is really expensive given the current state of the economy. However, with Tokenized stocks, Buycoins allows you to buy as little as ₦500 of each stock which means irrespective of your financial status you get to invest some money in the companies you believe in and gain when their value rises.
Available for 24/7 trading: With traditional shares, you are restricted to the opening and closing times of the stock exchange. However, tokenized stocks trading do not have this restriction. This means you can trade them 24/7 on your Buycoins account, liquidate them and profit from price movements at any time of the day.
Simplified investment: Now that Buycoins offers stocks, you get the opportunity to diversify your portfolio in one spot. You can easily split your funds across different coins & stocks and watch their progress from the comfort of your Buycoins app.
Future potential - At this point, you may be wondering “what unique difference do tokenized stocks have?”. Well, asides from the benefits listed above, there aren’t any more major differences right now. However, when you think about the current innovations happening because of digital assets and the countless possibilities achievable on the blockchain, tokenized stocks seem to be the better choice. Not only do you get the economic benefit from purchasing the stock, but you also get to tap into the crypto potential we expect to actualise in the nearest future.
So, what do you think? Are you ready to trade tokenized stocks? Click the button below to get started!
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