How Exchange Tokens Work
How do exchange tokens work and what opportunities do they represent in today’s crypto markets?
Let’s get to it!
What is an Exchange Token?
As the name suggests, an exchange token is a digital asset issued by an exchange. Such tokens are also known as native tokens.
Exchange tokens serve different purposes, the most common of which include fundraising, offering discounted fees, and building a stronger community base around the crypto project.
How Exchange Tokens Work
Exchange tokens work like all existing virtual currencies – primarily, for buying and selling other digital currencies.
However, in this article, we’ll focus on specific use cases that work best for exchange tokens.
Reduced Transaction Fees
Trading activity is one of the key figures of a booming crypto exchange. The more transactions are made by the users, the higher the trading volumes.
The exchange’s profits depend directly on the trading volumes as transaction fees usually apply for every deal. Most exchanges use their native tokens to more actively engage users in trading on their platforms by granting token holders a discount on transaction fees – if the latter is paid with their tokens.
Different exchanges offer different discounts, with some reaching up to -50%.
If you absolutely love the solutions offered by an exchange, then sharing is most definitely caring.
By inviting your friends, family, or followers to give something you really like a shot, you can also get rewards in the tokens native to the exchange you’re spreading the word about.
Some crypto affiliate programs are better than others, but if you’re on a mission to find the very best – and most rewarding – one, CoinMetro is your best bet.
Growing like crazy and overperforming, we’ve got a limited offer for you and your referrals to celebrate this: on top of earning up to 50% commission on your referrals’ fees, both you and your referral will get €10 worth of XCM in your account after they start trading!
Let’s put aside the marketing options and focus on earning passive income instead – with staking.
What is staking? Basically, holding the exchange tokens in your account or a crypto wallet for a certain period of time and getting rewards for that. No, it’s not a scam. By holding the tokens, you help a blockchain network achieve consensus, which makes your reward well-deserved.
You can’t expect to be friends with billionaires overnight by just staking, but this method of utilising tokens is a smart way to secure some extra cash.
That said, CoinMetro’s native token, XCM, staking is due to launch in Q2 2021. Meaning? The best time to buy your XCM is most probably now – or never. Here’s why:
- The XCM price jumped from $0.04 to $0.72 in just a space of a few months, growing a whooping 2,100%, thus beating the likes of Binance, Uniswap, and Huobi;
- There’s a huge support from the CoinMetro community and investors;
- We have even bigger plans up our sleeves for 2021 – now that Q1 exceeded our expectations growth-wise (CoinMetro is on target for 50% growth), we can focus on developing and enhancing our solutions to provide greater value for everyone involved.
Summing it up
Crypto exchanges are on the rise more than ever, finding better ways to build a stronger presence in the fintech scene. Issuing native tokens is one of them.
As within any industry, there are certain top players among crypto exchanges and their native tokens, but one just managed to outperform them all – CoinMetro’s XCM.
We invite you to join the future of finance with us – sign up today not to miss out!