Why do you need crypto exchange tokens
Crypto exchange tokens, like any other tokens, can be traded on different platforms. You can also just hold (hold) them in the hope of an increase in value.. When talking about tokens, crypto exchanges usually mean centralized platforms (CEX), since the functionality of coins of decentralized platforms (DEX) is somewhat different, and they are called DeFi tokens.
Do not confuse centralized exchange tokens with stablecoins, which can also be issued by trading platforms. For example, Binance has its native BNB token and BUSD stablecoin.. The latter is a so-called stablecoin pegged to the dollar, but not a native token.
Why are these native tokens needed at all?
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First of all, they are designed to make it easier for customers to interact with a particular site: to receive some kind of bonuses, rewards, reduce commissions for transactions, and so on.
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Secondly, it brings income to the exchange itself.. By and large, such tokens are something like stocks.. Exchanges “print” them, and then they earn money on them.
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Thirdly, with the help of native tokens of crypto-exchanges, you can receive income from investments.
The coins of which sites are the most promising in 2023?
BNB
The cost of BNB, like other cryptocurrencies, collapsed in 2022. True, it should be noted that the decline was not the largest in the market – 51.34%. The same Solana, for comparison, collapsed by more than 90%.
In general, BNB will remain of interest to investors as long as Binance is in demand.. So far, it is the largest exchange in terms of trading volumes and number of visits.. Despite all the scandals in which the site is periodically noticed, users prefer the exchange to many others.
The advantage of the token is the declared deflationary nature – periodically the digital coin is burned. You can use it in different directions: save on commissions, convert, book hotels, accommodation and much more.
For 2023, the coin has already added more than 28% in price. On the evening of February 20, the price of BNB is $315.6. From the point of view of technical analysis, the nearest targets (resistance levels) for the token will be around $338 and $400.
Source: tradingview.com
OKB
This is a native crypto exchange token from the Seychelles OKX. It is quite similar to BNB from Binance: you can pay commissions on the platform, receive retention rewards, take part in the management of the platform.
Unlike many other cryptocurrencies, OKB's growth began well before 2023.. The price of this token was not even affected by the situation with FTX in November or squabbles between Genesis and Gemini. In June 2022, OKB cost about $10. Over the next eight months, it rose more than fivefold.. At the same time, in this period of time, only in August 2022, the token showed a decrease.
Since the beginning of the year, the token has increased in price by more than 101%. Another distinctive feature of this coin can be considered the fact that, unlike others, it broke through its historical maximum.. Until 2023, it was just over $44.. Now OKB is worth more than $52.5, and at the maximum it reached $58.45.
True, the proximity to the marginal value and the growth over time should urge investors to be cautious.. At some point this movement will end.
Source: tradingview.com
Huobi Token (HT)
As you might guess from the name Huobi Token (HT) is the native token of the Huobi exchange based in the same Seychelles. The meaning of the token is the same as that of BNB or OKB. It was released at one time so that Huobi would not lag behind Binance.
What is good about this token? The fact that he has a limited maximum offer. It cannot exceed 500 million tokens. Both BNB and OKB lose in this regard.. Yes, all three tokens are burned. However, in theory, BNB and OKB issuance is unlimited.
HT peaked in May 2021, when it cost more than $33. Now its price is more than five times lower – $ 5.9. All in all, this is a good reason to buy. Unlike many other tokens, HT only rose in value by 11.7% in 2023.
Source: coinmarketcap.com
KCS
KuCoin Token (KCS) is the native token of the KuCoin exchange. Like HT, it has a limited supply. Initially, it was 200 million. Since then, the management of the exchange wants to increase the limit to 100 million through burning.
But otherwise, everything is the same as for other native tokens of crypto exchanges. There are similarities, there are advantages. For example, among the latter, one can single out the fact that each owner of 6 KCS is entitled to a daily reward.
The chart of this token strongly resembles the chart of HT. December 2021 peaked at $27.44. Then began a long fall. Which ended, in fact, only in December 2022. Since the beginning of 2023, KCS has already added more than 44%, and something tells us that the growth will not end there.
Source: www.coingecko.com
All tokens of cryptocurrency exchanges are designed for interaction within a specific platform: payment of commissions, staking, and so on. The choice of one or another coin will depend on where you prefer to trade. If you are an investor, then each of the presented tokens has its own advantages and disadvantages. We talked about the rates of other cryptocurrencies and about the situation on the crypto market in recent weeks in a recent detailed review.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.