Currency.com Exchange Review
Currency.com Exchange Review
The pioneer cryptocurrency, Bitcoin was first launched in 2009 by Satoshi Nakamoto. At that time, no one could have imagined how this digital currency would change the financial world. Today, after more than two decades, there are more than 6,000 cryptocurrencies in the market and they have become a force to be reckoned with. They have certainly gained popularity and have generated a lot of interest and traction in the market. The decentralized nature of cryptocurrency means that they are not controlled by anyone, but their lack of regulation has also led to a great deal of confusion.
There are investors who are in great favor of these cryptocurrencies and regard them as a safe haven asset. They have bought Bitcoin or other cryptocurrencies, but don’t really know what to do with their investment. Others have chosen to trade crypto CFDs because they believe it is the only other option at their disposal. One of the biggest impediments of global cryptocurrency adoption is the lack of regulatory status and this has automatically given way to an increase in demand for a regulated environment where cryptocurrencies can be traded safely and securely.
To meet this increasing demand, Currency.com was introduced and this tokenized securities platform allows traders to trade and exchange cryptocurrencies and tokenized assets. The purpose of this exchange is to extend the access of investors and traders to traditional commodities and financial markets and it has used advanced technology to develop an intuitive platform to make it happen.
Introduction to Currency.com
When Currency.com was introduced in 2019, the crypto community essentially became one step closer to global crypto adoption. This platform was developed for combating the cynical distrust and the several crackdowns that were associated with cryptocurrencies all around the world. The purpose behind Currency.com was to create a regulatory backbone to facilitate the trading of cryptocurrencies. These days, institutional as well as retail investors are interested in expanding their holdings from cryptocurrencies to buying tokenized securities on indices, stocks, shares and commodities and this platform provides them a base to do so.
Thanks to Currency.com, it is possible for investors who have bought Bitcoin, Litecoin and Ethereum to direct expand their investments and trade financial assets related to top brands and companies and even extend their investments to commodities without having to exchange their crypto to fiat currencies. With its headquarters located in Minsk, Belarus, the parent company Currency.com BCL LLC has a wealth of knowledge and experience and it made use of it to launch this trading platform. Furthermore, in order to expand the reach of their platform all over the world, Currency.com has also established offices in Gibraltar and the United Kingdom.
Relatively, Currency.com is still a new platform of its kind as it was only established in 2019, but even then, it has managed to develop a portfolio in excess of $20 million in transactions and they have had more than 5,000 registrations. The trading platform has used the benefits offered by blockchain technology, such as its transparent nature, and has integrated them into their system. Similarly, the platform has layers of virtual and physical security to provide peace of mind to its users. As it is an innovative system, the bulk of the activities and research on Currency.com are focused on promoting financial inclusion by making remote trading as easy as possible.
You can find a mobile app for Currency.com, which has been designed to be compatible with different operating systems and can be used for trading from any part of the world. Just like other sophisticated digital brokers, Currency.com is dedicated to providing traditional investors and traders with investment incentives and alternatives. Therefore, its current variety of more than 1300 assets comprises of nearly 8,000 tokenized assets.
What Makes Currency.com Exchange Different?
Even though there was a surge in crypto projects and ICOs, the mainstream adoption of cryptocurrencies in the long-term remained doubtful because of the inherent risks. In addition, there was also a disconnection between the conventional financial markets and the cryptocurrency market. To add to the problems, direct trading between traditional financial assets, commodities and cryptocurrencies remained quite limited due to the lack of any middle ground, which could be created through regulations and fiat currencies.
To overcome these issues, Currency.com came up with a platform that could foster a strong and more defined connection between crypto assets and traditional financial products. Thus, it provides institutional investors as well as crypto traders the opportunity to diversify their portfolio by directly trading their crypto investments and assets for securities on indices, shares, commodities and stocks without converting them into fiat currencies first. The aim of launching Currency.com was to promote stability for crypto investors and traders for combating the constant volatility that they had to face in the market.
Hence, Currency.com stands out as the first European platform to have been legalized for providing regulated tokenized securities. While traditional financial systems have scalability issues associated with them, Currency.com’s inculcated blockchain-based service helps users in processing their transactions in a timely manner and lets them benefit from complete transparency. When you opt for tokens on this platform, you can make investments in top global markets and use fiat currencies or crypto as collateral.
What are Tokenized Securities?
The biggest issue that most newbies face when they come across Currency.com Exchange is that they don’t know what tokenized securities are and this results in a great deal of confusion. Put simply, tokenized securities just define tokens indicating the price of underlying assets, such as commodities, securities and bonds. Investors would obviously be worried about the economic outcome they can expect from these tokenized securities, whether it is a profit or loss. It should be understood that these securities work in the same way as futures, equities, bonds, derivatives, commodities and other reputable financial instruments.
More than 10,000 tokens are issued by Currency.com and these are set according to the market prices of various asset classes. These include shares of some of the most renowned companies and organizations in the world, such as Amazon, Coca-Cola and Apple, indices like S&P 500, NASDAQ 100 and Dow Jones 30 and commodities including gold, silver and Brent crude oil. You will be issued a token on Currency.com only when you place a trade. The price of the selected financial instrument will be tracked by this token. This provides investors with a wonderful opportunity of achieving portfolio diversification without having to go through the hassle of exchange their crypto for fiat currencies.
If you are wondering about liquidity prices, Capital.com, which is Currency.com’s partner company, provides the original prices. The best part is that thanks to the blockchain-based technology, the prices are transparent and accessible and the best prices are given to help investors take advantage.
What Tokenized Securities are Available?
As mentioned earlier, a wide range of financial assets can be traded on Currency.com and this allows traders to leverage their crypto investments in traditional markets and make a profit. Some of the major tokenized securities that Currency.com offers are:
- Tokenized Indices
Stock indices are also part of the conventional financial markets and they are referred to as indexes because they are a very important part. Some of the most popular indices that are available include S&P 500, FTSE 100, NASDAQ and Dow Jones. Stock index measures are aimed at analyzing the performance of a group of shares from a particular exchange in terms of price. Currency.com’s indices offerings also include US30, CN50, SP35, IT40, US500, DE30, US100, NL25 and FR40.
- Tokenized Commodities
Signing up on Currency.com also gives investors the opportunity of using their crypto holdings for trading in some of the world’s biggest markets. The commodities market is an excellent example as traders are able to invest in precious metals like gold, silver, palladium and platinum as well as trade energies like natural gas, crude oil and Brent crude oil, amongst others.
- Tokenized Shares
One of the most renowned and oldest markets in the world is the stock market and Currency.com gives traders the opportunity of engaging in this market as well. When traders decide to participate in the stock market, they will be speculating on the stock prices of some of the world’s most reputable and biggest companies. Currency.com gives its clients the opportunity of purchasing and selling shares of leading companies like Slack Technologies, Apple, Netflix, NVIDIA, Fiverr, AT&T, Visa, Uber, Tesla and numerous others.
- Tokenized Government Bonds
Government bonds are well-recognized debt instruments that are issued by the country’s government for the purpose of financing short-term and long-term government spending. Currency.com gives its clients the chance to trade Belarusian government bonds through their platform.
What is the Registration Procedure?
If you have made up your mind to use Currency.com’s platform for trading tokenized securities, you will first have to register with them before moving forward. It is natural to be apprehensive when it comes to the process because most people don’t know what information will be required. However, there is no need for people to worry because the process is relatively easy and straightforward and anyone can get through it quickly. You need to visit their website and then go to the top navigation menu for clicking on the ‘Exchange’ option.
It should be noted that Currency.com is in compliance with the Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. This is a requirement because the platform is regulated by the High Tech Park of Belarus and the company is also audited by Ernst and Young. Due to their regulatory status, it is mandatory for the trading platform to comply with KYC and AML policies and so it does. The registration process actually begins with entering an email address and selecting a password. Traders will also have to share their location with the exchange, their nationality, name and current address, all information that matches your passport.
To take the process forward, you need to verify your email and this only takes a couple of minutes. After you have verified your email, you have to follow the KYC policy rules that demand that you verify your identity. In order to do so, traders are requirement to submit any form of government-issued ID that shows their name, such as driver’s license, passport or national ID card. The next part of the KYC policy is address verification and this asks traders to submit a bank statement, credit card bill or utility bill showing their name and address. When you are done with all the verifications, you can move onto the actual process of Currency.com.
What Banking Methods are Supported?
You have registered and verified your account on Currency.com and now you are ready to trade, but how will you do it? Where will you get the money from? This is where you move onto the banking methods that are supported on the platform because one of these will be used for depositing funds, which can then be used to begin trading. There is a ‘Wallets’ section on the website where you can go to explore your options. Currency.com has chosen to be quite diverse and accommodating in this regard as it allows you to use three cryptocurrencies including Bitcoin, Litecoin and Ethereum or you can go with fiat currencies, which include Russian Ruble, US Dollar, Belarusian Ruble and Euro.
Moving onto withdrawals, it is reassuring to know that these are also straightforward and convenient. If you have made deposits through fiat currencies, withdrawals will have to be made through bank wire transfer. If you have deposited funds in your account through a credit or debit card, withdrawal will have to done through the same method. You need to go to your account, select the ‘Withdraw’ option and then choose the currency you wish to withdraw. The next step is to choose the bank transfer option. When you are finished with these steps, you just need for the money to be transferred into your account.
How to Begin Trading?
Those who are new to this form of trading are very likely to be confused and overwhelmed because they have no idea what to expect. They don’t know what kind of learning curve exists and whether they will encounter trouble or be able to trade easily. Currency.com understands this sentiment and so they have made a great deal of effort to keep the process simple and easy by ensuring that it remains similar to how a cryptocurrency or traditional asset is traded on a digital exchange. It is up to traders to buy or sell and when it comes to risk concerns, they are the same as those you have to face in other forms of trading. But, how will you buy and sell tokenized securities?
Buying on Currency.com
The beauty of Currency.com is that it is a sophisticated trading platform that provides people with the opportunity of trading stocks, indices, commodities and various other instruments, but has kept the process easy to follow for everyone. If you are interested in buying and you want to purchase an index, all you have to do is select the one you want and then click on ‘Buy’. One of the most prominent things to know about Currency.com is that it gives you the opportunity of allocating a certain percentage of your current cash or crypto position to simplify the buying process. Doing so will open up a tab automatically that gives you all the market prices at which the purchase will be made.
If you have a specific price point in mind, you can place a limit order by clicking on ‘Buy When Price Is’ option. All you have to do is click on ‘Buy’ or Place Order for executing the transaction, depending on whether it is a buy order or limit order. You can go back to your wallet after completing the steps. You will be able to check your open position at the bottom, which will show that you own a small part of an index.
Selling on Currency.com
The trading dashboard will show you all the assets you have purchased and will also give you the option of selling them. If you are interested in selling, all you need to do is click on the ‘Sell’ button provided. Again, if there is a specific price point at which you wish to sell, a limit order can be placed. After you have provided the necessary details, all you have to do is click on ‘Sell’ or Place Order. This will end that particular trade.
These steps indicate that trading on Currency.com is extremely easy, whether you are new to this form of trading or have done it before. There is no need to worry about any hurdles or difficulties as the process can be smoothly navigated.
What Kind of Security is Maintained?
Being an innovative platform, advanced technology has been used by Currency.com for the security of its entire system, clients and their funds. The company has opted for LD4 data center for keeping its servers and there is a fully equipped video surveillance system that monitors it 24/7. Security of the platform is further strengthened by the implementation of two-factor (2FA) authentication, IP addresses and also API keys that can be used for sorting through any potential and possible threats. Since Currency.com is a regulated platform, its security infrastructure has been developed to be compliant with the security standards of the International PCI/DSS payment system.
The system of the platform has also been verified by its European blockchain regulator, the Belarusian High Technology Park. It is well-known that there is a certain degree of risk associated with digital trading, particularly in light of the security breaches that have occurred at different digital trading platforms. Currency.com is well-aware of these problems and it guarantees user privacy by using the highest standards of encryption on its platform. The exchange also uses cold and hot wallet services for securing customer funds that are entrusted to them.
As far as its cold wallets are concerned, Currency.com has used PGP/GPG-enabled encryption that requires keys and a multi-signature procedure before allowing any transactions to happen. Even though the platform’s exchange system is limited to Bitcoin and Ethereum, it has inculcated a technology that enables people to interact with the blockchain of these assets. When it comes to hot wallets, Currency.com allows for fast execution of trades as opposed to other platforms and it only keeps 3 to 5% assets in it. Authorized signatories are required in the use of these wallets for security and protection of funds.
What Leverage is Available?
The significant feature of leverage trading is that it provides investors and traders with the option of increasing their trading position beyond what is at their disposal at the time of trade. This is a method that comes in handy when traders want to maximize their profits and expand and diversify their portfolio. This opportunity is provided by Currency.com to its clients and the offerings begin from 1:10 and goes as high as 1:100, depending on the asset class you are trading.
For crypto traders, the platform offers a leverage of 1:10 while 1:20 leverage is given to tokenized stock investors and traders. Leverage for tokenized indices and commodities is set at 1:100, which means that for every $1,000 in their account, investors can trade for up to $100,000.
What Kind of Customer Support is Offered?
The quality of the customer support system of a platform determines its engagement rate. Currency.com has created a robust customer support system, which is designed to assist clients in becoming familiar with the platform and helps them in getting started. Since it caters to clients globally, the support system is multilingual and there is a live chat system that can be used 24/5. An FAQ section is also provided by Currency.com to make it easier for investors to find answers.
Conclusion
Even though it is relatively a new trading platform, Currency.com has become a pioneer in bridging the distance between the traditional financial markets and the crypto space and provides unified trading in a regulated and secure environment.
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