You can now trade tokenized stocks on Buycoins!🚀
Answering some questions you might have.
We are excited about this, and we’re happy that the reception has been great so far. We understand that you might have some questions, so this article addresses general questions about tokenized stocks.
What are tokenized stocks?
Tokenized stocks are tokenized derivatives that represent equity shares in companies that have gone public, on regulated exchanges such as the London Stock Exchange (LSE), New York Stock Exchange (NYSE), Nasdaq Stock Market (NASDAQ), and a host of others.
Some examples are Apple, Amazon, Facebook, Tesla, etc.Â
How do they work?
When you buy 1AAPL (the tokenized derivative of Apple stocks) on Buycoins, you have no ownership in Apple Inc.; you can only benefit from the economic performance of Apple stocks.
Tokenized stocks are pegged 1:1 to the traditional stocks they represent, entitling users to the same economic benefits. You can redeem them for the NGNT value of their underlying stock.Â
How do I trade tokenized stocks on Buycoins?
You trade tokenized stocks the same way you trade other cryptocurrencies. However, unlike your crypto, you won’t be able to transfer your tokenized stocks to other wallets. You can only buy and sell. Use this as a guide for a better understanding of how this works.
What are some benefits of tokenized stocks?
You can trade tokenized stocks 24/7: Unlike traditional stocks, there are no closing and opening windows to trade tokenized stocks. As such, the market is open every hour of the day to trade. The liquidity may vary at different times, but you can always buy/sell whenever you want.
More liquidity: Because you can trade 24/7, you can get value whenever you want, without obstructions.
Fractional ownership: You can buy just a ‘piece’ of stock instead of having to buy an entire stock. So you can still benefit from the economic performance of your favourite companies without having to buy an entire stock.
We can’t wait for you to try it out here.
Feel free to reach out to support@buycoins.africa if you have any questions or feedback