The Advantages of the BIT Token
The crypto domain has become increasingly popular lately, and people started to read more on Bitcoin and cryptocurrency, and also became interested in the use of cryptographic tokens. But since this is still a relatively new investment option, compared to the long-established traditional ones, there are still many people who aren’t sure how the process of crypto trading works. The blockchain-based token shouldn’t be confused with cryptocurrency or altcoins, so a few clarifications are in order.
Token vs. Cryptocurrency
Since these terms are sometimes incorrectly used, which leads to further confusion, these are the main characteristics of each one:
Cryptocurrency is used to make or receive payments on the blockchain. They are digital currencies, and Bitcoin is the most popular one. Altcoins, or alternative coins, were created as a possible replacement of Bitcoin as the public’s preferred cryptocurrency.
Crypto tokens are also an asset that you can trade, they are created over an initial coin offering or ICO, and they work on top of the blockchain. Security tokens are used to make the connection between the asset and the owner.
The Advantages of Using Tokens
When you use tokens, you don’t depend on banks and stock markets and aren’t limited by their working hours, which means you can make a transaction whenever and as fast as you want. The use of security tokens also means the client can choose multiple investments, and the blockchain-based digital wallet keeps the record. Unlike cryptocurrency coins, tokens aren’t actual currency, and to issue them, you don’t need to create a blockchain, but use an existing one, like Ethereum.
To get a better understanding of tokens, an important aspect to understand is that their goal is to interest investors in an initial coin offering (ICO). To better illustrate this, let’s consider Bitcoins. You get Bitcoins through mining, but tokens are created by someone who already owns Bitcoins or another cryptocurrency. Investors are encouraged to make their contributions, and in exchange, they will get a share of the profit that future transactions will bring. In a way, they are similar to stocks, except they don’t also bring managing rights like you get when owning stocks in a company.
When used in an application, tokens are used as inner currency, and you can use them to invest money into projects connected to cryptocurrency, and you are guaranteed a certain profit in a particular time frame.
The BIT Token
Barin offers the opportunity to invest in internet businesses, with significant yearly profit. For cryptocurrency, the investor will use the BIT token. Apart from being user-friendly and an excellent way to invest, the token also ensures partial ownership of the company’s blockchain-based stock exchange in the near future. Investments are secure, as they are handled by a licensed company, using investment loan agreements.
The funds from cryptocurrency investors are used to buy internet resources by selling the BIT token, and the asset income is then used to buy back the token at exchanges. These buybacks are done automatically on a daily basis, which will increase the coin value; that way, the investor can later sell the coin at a price that’s higher to the one they bought it at.
This is how the token system works and why it’s particularly beneficial: the investors put their money into assets of traditional currencies, and the income that results, supports the BIT token. It may sound a bit complicated at first, but in fact, it’s a system that doesn’t require much effort from the investor, and the profit is extremely tempting.