Exchange Coin Investment: A Viable Strategy?
The cryptocurrency market remains in a perpetual drought. Since the onset of a major crash for the leading currency Bitcoin last month, the entire sector has seen a continual decrease in coin value. Even the most steadfast supporters of the market are beginning to lose their feelings of optimism as prices continue to fall dramatically. But in this state of affairs, the community is looking for new ways to make sure that their investments aren’t quite as susceptible to the volatility in this current market.
One option that many investors are starting to consider is the prospect of investing within cryptocurrency exchange coins. The coins themselves are created initially in order to provide a stable coin with which all other new currencies can be traded on an exchange. Additionally, the currency is able to provide an increase to the liquidity of all coins on the network.
While the coins are typically only backed in terms of technology from the exchange which they are named after, the tokens are known for their stability in price, as well as their link to the success of the overall market. In the past quarter, many commentators were surprised to see that the Binance (BnB) coin continued to retain or even gain value, despite crashes in prices for coins hosted on the main Binance market that created it.
But not all exchange coins are created equally. To the contrary, some coins are much likelier to come forward with continual profits, while other currencies linked to exchange markets are just as volatile as the coins which they allow investors to avoid losing money investing in.
Binance Coin is one of the most reliable investments, especially when it comes to exchange-linked cryptocurrency tokens. BNB is a newer exchange, only having cropped up in early 2016. But the company has quickly climbed to the top of the volume rankings for cryptocurrency exchanges with fees. One aspect of this rise to prominence is that the company has been quick to take steps to strategically use their coin to incentivize participation.
The token is capped at a total supply amount of around 192.5 million BNB tokens, while only around 95 million remain in circulation currently. The success of the Binance token has generally been directly tied to the amount of interest in the market, making it a sure bet for investors who want to invest in a steady, predictable coin with a thoroughly-vetted future.
The Huobi Token is another potential investment which maintains some continuing value. However, it functions a little differently than the other leading cryptocurrency coins linked to existing exchanges. This coin can only be bought through the purchase of point cards, which are sold at a rate of one U.S. dollar per coin.
Once the points are acquired, they then can be used to purchase Huobi Tokens ($HT) on the Huobi exchange. The tokens are used to give users regular discounts on purchases made on the site and exchange rate advantages. A semi-regular buy-out of the tokens occurs as well, meaning that the tokens continually increase in value (in theory).