Cryptocurrency exchanges have some stiff competition but there are a few ways to stand out in this market. Things like user interface, coin listings, liquidity, and trading fees, all play a part in determining which exchange a user wants to join.
Luckily for us, the users, these exchanges are hungry for ways to provide the best kind of service and incentives in order to lure us their way.
Many have chosen the path of native tokens.
Binance is one of the first and certainly one of the most popular to offer a native token that rewards holders in more ways than one. Since then, even though it’s been a very short time since the rise of popularity for Binance, other exchanges have taken this idea and ran with it. They’ve come up with some creative ways to incentivise and reward those who use their platform and even more so for the holders of their token.
So many exchanges have adopted this incentive model that I think there’s enough material here for at least two videos. # So here is part one:
VIEW VIDEO HERE^^^
Binance (BNB)
We’re going to kick this one off with none other than Binance. Binance held an ICO and created an ERC20 token not too long ago. It really wasn’t long after that this exchange saw an incredible increase in users.
This Binance token is called BNB and holders of it can benefit with 50% off trading fees the first year of using Binance as long as they are storing their coins on the Binance exchange.
This percentage decreases over time and after 5 years, a discount is no longer applied.
Binance also uses 20% of its profits each quarter to buy back its tokens and burn them until the total supply has been halved. As long as this is done correctly, this token burning will effectively reduce the supple of tokens, making them more scarce and thus more valuable over time.
KuCoin (KCS)
Next up, KuCoin is an exchange based in Hong Kong which pays dividends to those who hold their coin called KCS.
The dividends you receive are proportional to the percentage of total KCS that you hold.
KuCoin distributes 50% of its trading fees to KCS holders and 40% of these fees are a reward for those who make successful referrals.
I think this one is pretty cool because the dividends aren’t paid in KCS coins, instead you’ll be paid in whatever coins the fees were paid in. This means you’ll be receiving different coins are rewards. This could be an easy way to diversify your portfolio without having to actually make the trades.
Also for every 1,000 KCS you hold, you’ll receive a 1% discount on trading fees.
Like Binance, KuCoin will take 10% if their profits and use this to buy back and burn their tokens in an effort to reduce the supply.
Huobi (HT)
This next one, Huobi and their coin ticker symbol is HT. This one is similar to Binance again with the discounted trading fees and also with a scheduled buy back program. One difference here is that instead of effectively destroying these coins, Huobi transfers them to a User Protection Fund. Which Huobi uses to reimburse users who have been victims of a security breach.
Holders of HT can also have a voice on which coins will be added to the exchange thanks to the HADAX. (Huobi Autonomous Digital Asset Exchange) The more HT you hold, the louder your voice is with this voting system.
The top two coins are then added to the exchange and those coins are then airdropped to HT users.
CryptoBridge (CBO)
Don’t worry, decentralized exchanges are on it as well. CryptoBridge has the coin, BCO, and this is the native token for the decentralized exchange which was built on the Bitshares platform. It’s also mineable.
They’re going to make to work a bit to get your rewards though. You can earn rewards by staking these coins. The longer you stake, the higher the percentage you’ll see as a reward.
You’ll max out at a 100% bonus after staking for one year.
Yes, to get the potential benefits we have to chose the right Cryptocurrency Exchange Platform, but it's not that easy and people get the right choice after experience and for that we have to spend some time and little money to understand it.
Yes, now Crypto is the next phase of future and many Blockchain Technology Platforms and Cryptocurrency Exchange Platforms are coming forward with great incentives opportunities. But, we have to go through from overall aspect before choosing.
As we are moving towards more Crypto Developments and Crypto Sphere, the potential scammers and scamming platforms are coming up so before thinking to invest or transferring money to particular exchange try to research every bit of that exchange so that you can stay away from any potential scams.
In my opinion future is so exciting and we will going to enter into full fledge Crypto Sphere and more exciting platforms will going to enter into the Crypto Sphere and inturn that will give us diversified options and also we can make some great choices.
Thanks for sharing this post with us and wishing you an great day. Stay blessed. 🙂
The people will start using decentralized exchanges, when governments will close centralized one, which are now more popular because of their bigger volumes and ease of use.
I think the next big spike in crypto prices will occur when the public realizes what a decentralized exchange is and what it can do...and what can't be done to it! Be shut down by the government!
Unfortunately broad public doesn't care about their privacy and rights .... until it's often too late.
There is so much else to think about!
Hi Heidi!
Thanks a lot once again for this new video.
Sorry but I do not have a lot of time lately so I am not really able to comment on every post. But really amazing work and thanks for helping the crypto community.
Hi wow thanks a lot for your upvotes. I really appreciate that. Thanks.
#cheers #lookingforwardtopart2
I think the increasing popularity of DEX is due to these couple of reasons:
1.) Anonymity - Most Centralized exchange requires you to either do KYC for large withdrawals.
2.) Security - Just google 'crypto exchange hacked' and check out how many hacks happened in the past 6 months alone.
3.) Control - What happens if the exchange denies you access to the App?
4.) High Fees - Exchanges like HitBTC charges as much as 0.001 btc (approximately 7 USD at the time of writing)
https://steemit.com/iq/@noorsamad/never-loses-trading-strategy-on-iq-option
I’m really glad I picked up some BNB, I was happy to save fees and certainly didn’t expect the price to skyrocket like it did.
Amazing information please tell us about bittrex exchange also
i always learn a lot from you heidi ! thankyou for your awesome information consistently:) I'm willing to bet you pronounced huobi correctly lol
Hey @stevenalexander :) I'll be in a place with a more consistent wifi connection finally in the next couple weeks, let's schedule that interview finally!
Hi,
Now, I need to figure out which exchange offers the best reward or ROI for me.
Expect crypto to go up, USD to go down. And watch the decentralized exchanges happen.
Excellent content, curious as to why Coss was not included?
COSS were truly terrible at one point. I bought COSS when I bought KuCoin, around October last year. Recent COSS users can't understand why I hate COSS, but I promise you that that exchange was on the verge of death. It's a long story, but I lost a ton of money on COSS because the exchange became almost unusable and I had to make big sacrifices to get any money out at all! I'm never going back to COSS.
Fair call. I'd love to see a detailed post about the experience you had? I think a lot could benefit from this experienced information?
That's a good idea. Thanks, I'll consider doing it.
Excellent content,
Curious as to why Coss
Was not included?
- cryptorunt
I'm a bot. I detect haiku.
I made a small fortune from KCS, buying in at between 0.50 - 0.80 USD and selling for just below $15. I still hold a little, but nothing like I once did. It grew so fast that it shot up from about 2% of my portfolio to about 40%! It's a great exchange though and still definitely my favourite.
Binance is also really good. I picked up a lot of BNB really early and really cheaply. I made a big mistake selling it off in little chunks to buy other coins. Now I'm fighting to try to build my BNB back up, but I don't even hold a third of what I once did. With the future of Binance looking decentralised, BNB is a fantastic hodl coin.
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Greetings, I like your publication, keep it up. Topics like this have to be highlighted. I hope all supporters continue to support, blessings.
For meBinance is better option for investment.
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