Since coming unto the scene a few years back, Currency.com has captured the interest of many traders worldwide. The platform is arguably designed for investors who want to trade some of their traditional financial assets like Shares, Indices, and Commodities of some companies and big brands.
It is also possible for them to do so by converting their crypto holdings into fiat. They can as well receive profits from trading these tokenized assets on the platform.
In this article, we dive into Currency.com and features that have made the platform stand out amongst its competitors.
Currency.com prides itself as the world’s first regulated tokenized securities trading platform. It allows users to gain a lot of exposure to traditional assets’ underlying market prices by using cryptocurrencies or fiat as collateral. Users on this platform can trade in crypto and receive their profits in crypto.
The company has over a hundred professional personnel working in driving the goals of the firm. The senior personnel members are Ivan Gowan, the CEO, and Alexander Shevchenko, the General Manager and Director of currency.
Currency.com keeps expanding its supported tokenized securities list and plans to offer more than 10,000 tokenized trading instruments in the future.
This platform is a global exchange, but there are few exceptions. Due to regulatory hurdles, the platform is not available to citizens and residents from:
- The United States
- The Bahamas
- Democratic People’s Republic of Korea
- Sri Lanka
- Trinidad and Tobago
At the time of writing this Currency.com review, the platform is translated into four languages: English, Russian, Korean, and Chinese.
What are Tokenized securities?
A common misunderstanding with Currency.com is the platform’s decision to offer tokenized securities instead of direct assets as on other competitors. But, understanding what tokenized securities make it easy to understand why they are viable investment tools.
Let’s explain the basics.
What is a Security?
A security is, it is a fungible and negotiable financial instrument that holds some type of monetary value in a firm or other assets.
It can also represent the ownership in a company’s stock, a creditor relationship with an entity through a bond, or rights to ownership as represented by an option. A security can be broken down into three overarching categories: equities, funds, and debts.
Equity is an investment in a stock that is issued by another company. The stock can be either private or public and represents ownership of an entity. The entity could either be a corporation or a trust. Equity securities also entitle the holder to some control of the entity on a pro-rata basis, via voting rights.
Debt represents money that is borrowed and has to be repaid. The issuer of the bond (or liability) owes the holders debt and is, therefore, generally obliged to pay the interest, and to pay the principal on the maturity date as stipulated in the offering documentation of the security. Typically, interest is paid as fixed intervals (monthly, quarterly, annually, etc.)
An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities. Each investor retains ownership and control of their shares. The same principle can be tokenized, and the tokens can represent shares in the fund.
What is Tokenization?
Security tokenization is the process of materializing the ownership in a security through the issuance of a “token” registered on a distributed ledger technology (DLT) infrastructure. Therefore, a tokenized security can be equity, a bond, or an investment fund. It could also represent a securitized fraction of a real asset (e.g., a piece of art).
The DLT, known as “Distributed Ledger Technology” infrastructure, is used to issue the tokens depending on local laws and the choice of the issuer. It can either be the “primary register” for the security or representation in the form of tokens primarily issued on a different infrastructure outside of the blockchain.
Our world is full of these securities, but many are currently difficult to physically transfer or subdivide. Hence, buyers and sellers trade paper or unsecured digital files representing some or all of the assets.
Through tokenization, these assets’ rights can be shared almost instantaneously thanks to peer-to-peer trading on platforms like Currency.com.
Is Currency.com Regulated?
Yes, Currency.com Bel LLC is regulated in Belarus under the country’s newly enacted laws for the blockchain industry. Additionally, the Supervisory Board of the High Technologies Park, an agency for blockchain-related companies in Belarus, supposedly conducts regular audits of the platform’s activities.
At this point, though, it is vital to note that being regulated does not mean that a broker cannot go bankrupt. Instead, it is easier for traders to trust that the platform has skin in the game and maintains the best operating standards.
Should I Use Currency.com?
Currency.com is growing into a well-trusted platform for traders. Customer details and credentials are safe, and communications with their support team are encrypted using industry-standard HTTPS over public networks. This means that the traffic between you and their platform is secure.
Funds are stored, safe, and sound in a bank account entirely separate from the operations account. They also cannot be borrowed or lent, even for margin trading to fund operations on our platform.
Supported cryptocurrencies by Currency.com include Bitcoin (“BTC”), Bitcoin Cash (“BCH”), Ethereum (“ETH”), Litecoin (“LTC”), Ripple (“XRP”), and Tether (“USDT”). All of these are available. You decide to use any that you want to use.
How to trade on currency.com
Trading on currency.com is simple. You can trade using Bitcoin, Litecoin, Ripple, Ethereum, Bitcoin Cash, and Tether.
We will be emphasizing on how to trade on this platform.
Bitcoin – This involves acquiring BTC at a reasonable price and attempting to cash out when the cryptocurrency has appreciated substantially.
Once you are a registered and verified trader on this platform, you can invest in Bitcoin with your Visa, Mastercard, or a bank transfer. Instantly buy crypto tokens with fiat money at a competitive price.
As seen above, trading the tokenized securities on Currency.com is very much the same as trading any other cryptocurrency or traditional asset on any digital exchange. Users are able to choose whether to buy or to sell.
The risks associated with profits and losses are the same as with any other form of trading. Now, let’s take a closer look at why currency.com is the right platform for you to trade your bitcoin.
Other Features of Currency.com
This trading platform takes extreme measures to ensure the safety of all clients’ accounts and personal information. This includes employing the best two-factor authentication on all of its platforms, such as funding, trading, logging, and every other activity carried out using the API keys.
They have fast and responsive customer service that is always ready to attend their client’s needs. They are reachable round the clock via a variety of support channels. You can contact them via email or the LiveChat option on the website. Other support channels include phone, Viber, Whatsapp, Telegram, and Facebook messenger.
This trading platform offers leverage from 1:2 up to 1:100.
The number of tokens:
They have, 300+ (up to 10,000 eventually)
A wide range of assets to trade places Currency.com above rival platforms.
Deposit and Withdrawal:
Withdrawal request requests are being processed the same day withdrawal was applied for.
It can sometimes take up to 3 business days to process a withdrawal completely. They work more closely with banking providers and also expect that the processing time will get shorter.
Depositing of funds may take several days to appear on your account due to some banking system delays or might even be faster.
Deposits on Visa card and MasterCard have a minimum of 100 US Dollars and 24000 US Dollars equivalent.
For bank transfer, the minimum deposit is 50 US dollars and 24000 US Dollar minimum and maximum deposits, respectively, with no deposit commission.
This trading platform is securely regulated by the Hi-Tech Park (HTP) of Belarus, making it under the strictest scrutiny from the blockchain technology legal authority. This security measure implies that the regulatory body protects the rights and investment of its customers.
This trading platform made it possible for users who aren’t experienced or those who don’t know how to use this platform to use their demo account to practice.
Using a demo account helps newly registered members to learn and try trading tokenized assets with their demo account, irrespective of their trading experience or level. A demo account is an account that allows you to try the trading platform without committing your real assets to any financial risk.
With this virtual account, traders have a firsthand experience of tokenized assets and market trends.
Both you and those brought into this platform, either your friend and family, get a random tokenized stock of up to $100 in value and a 50% commission for you + 10% discount on commissions.
Cryptos taker fee: 0.075%
Cryptos maker fee: -0.025%*
Tokenized assets (Shares, ETFs, Indices, Commodities): 0.0125%
Tokenized currencies: 0.002%
Tokenized assets (Shares, ETFs, Indices, Commodities): 0.05%
Tokenized bonds: 0.03%
Tokenized currencies: 1%**
Companies tokens: 0% (buy), 1.5% (sell)
Fees will apply to continuously leveraged trades held according to the market rate ***
Overnight Funding Amount
An overnight funding amount is either added to or subtracted from your account when having order after a certain time. The formula used to calculate the daily overnight funding fee : (Tokens quantity * Current price – Reserved) * Daily Overnight Funding fee%.
Note: Currency.com uses a Russian payment service provider. Transactions using bank cards (Visa, MasterCard) are executed with an exchange to Russian rubles, which means the final sum might differ.
How to Create An account on Currency.com
If you want to create an account with Currency.com is not difficult at all. All you have to do is to follow the steps below.
It starts with you entering your email address and choosing a password for your account. Afterward, you’ll have to select your country of residence and nationality, and you’ll need to confirm if you are resident in the U.S or not for tax purposes.
The next screen will request for your first and last name – and that’s it, your account is almost all set up. Next, verify your email address, and you can go ahead to fund it to begin trading.
Meanwhile, you can as well go through the site very well to take a quick tour and understand some things. If you’re a beginner, the brokerage platform provides an array of educational materials and trading dictionaries that can improve your learning experience.
Here is a list of tokenized assets available on the trading platform:
- Tokenised shares
Shares in a company, as the name suggests, offer a share in the ownership. Usually, though not always, these transactions are conducted on stock exchanges. You can invest in companies like Tesla, Facebook, Amazon, etc. by buying their tokenized shares on Currency.com.
- Tokenized commodities
Commodity trading (buying and selling for raw materials) is as old as man and remains profitable. Currency.com allows you to trade different commodities, including both hard and soft commodities.
Mainstream interest in cryptocurrencies skyrocketed in the last decade and is showing no signs of stopping. Many traders have also swapped the Forex or stock market for cryptocurrencies since they offer more profit potential.
If you’re looking to switch camps, then you may want to consider using Currency.com.
- Tokenized indices
Indices are a measurement of the price performance of a group of shares from an exchange.
The S&P 500 and NYSE 100 are some of the most popular stock market indices that you can find on Currency.com.
- Tokenised currency pairs
A currency (Forex) pair is the quotation of two different currencies, with the value of one currency being quoted against the other. Forex traders use Currency.com to get exposure to multiple currencies while trading with maximum leverage.
- Tokenised Government Bond
A government bond is a debt security issued by a government to support government spending and obligations. You can access Belarusian government bonds using Currency.com.
Currency.com bridges the gap between the fiat-based market and the crypto and blockchain technology space. The company also has a goal of becoming a decentralized exchange and appears focused on improving its services.
The website has a user-friendly, easy to use interface, making it a supposedly ideal option for all traders and investors, not minding their level of experience in the financial and crypto markets.