Asset Backed Tokens vs. Stocks

By Teodor | Circular Economy Projects | 28 Feb 2020

The Benefits to Investing in Asset Backed Tokens vs. Stocks

While there are few drawbacks to token trading and staking or holding, there are many benefits, which stock trading cannot offer to stock buyers. 

The Benefits to Tokens:

  1. You can trade asset backed tokens (security tokens) 24/7 without restrictions.
  2. The fees are negligible compared to trading on regular exchanges.
  3. The minimum purchase amount is very low, accessible to any trader or crowdinvestor.
  4. Some exchanges give you registration bonuses you typically cannot get with regular exchanges.
  5. You can buy fractions of an asset backed token.
  6. You can spend the dividend or interest right away.
  7. You can use security tokens for staking.
  8. Given you store your tokens off the exchange as you should, you should never be concerned with someone else restricting your access or from hackers stealing your funds.
  9. Tokens itself is highly secure and accurate, everything is tracked with 100% accuracy and everything is verified for integrity.
  10. You do not have to pay holding fees.
  11. It is very easy to transfer compared to withdrawing or depositing a stock and is much faster.
  12. With decentralized STO exchanges, it is easily available to anyone regardless of their banking services or location (given it is legal).
  13. Transactions are made significantly faster.
  14. Price is reliant on both the company achievements and on the network of token.
  15. You need a bank to trade on an exchange, but you don’t necessarily need a bank to trade tokens.
  16. You can earn tokens from hosting a node on a network.

Some of the Drawbacks to Tokens:

  1. Cryptocurrencies are volatile, but security tokens are not, as they are backed by real physical asset.
  2. User error can be very costly.
  3. Paradoxical Blockchain process: the more decentralized you go, the less support you haven and you cannot go too far with decentralization, as your company must function in the real world of business which is regulated, otherwise will be a jungle.



Compiled from an article published on Publish0X by @scottbusiness with author's permission:


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