Cryptocurrency exchanges are one of the most important institutions in the sector. For a majority of consumers, they are the platform through which they can buy and sell all the tokens they want. Major exchanges like Binance and Coinbase record billions of dollars in transactions every month, so their importance cannot be overstated.
But did you know that crypto exchanges do so much more than just spot trading? Many consumers overlook some impressive features that the average crypto exchange offers. This, in turn, means that they are not maximizing their crypto experience. Here are some of the interesting things you can do on a crypto exchange.
1. Token Discovery
At any given point, investors are always on the lookout for new tokens to invest in. With the crypto industry being home to thousands of tokens at any given time, this can all be a bit confusing. The good news is that crypto exchanges are a great way to discover new tokens to invest in. Because these tokens have gone through a rigorous review process before being listed, you can be sure that they are high-potential and high-quality offerings.
As Marina Avramovikj writes, the next big Binance listings are predicted to be some of the best new tokens in the market. To discover new tokens on your exchange, head over to the listings page and it should show the newest and upcoming tokens for your consideration.
2. Staking
Speculative crypto trading comes with the risk of volatility and even loss of profits. But there is a lower-risk way to make money from cryptocurrency and this is staking. Staking involves locking away your tokens for a certain period of time to support the network and getting interest in return. Many major crypto exchanges like Binance and Coinbase allow you to stake your tokens directly from your exchange wallet.
This means that you don’t have to transfer your tokens to another wallet first and your rewards are instantly made available to you. For anyone looking for a low-risk way to make money from crypto, this is a great option.
3. Buying NFTs
NFTs have become one of the most high-profile, albeit sometimes controversial, blockchain-based assets. While most people buy their NFTs from sites like OpenSea, many crypto exchanges are also getting in on the action. Take Binance, which has hosted several exclusive NFT collections that won’t be found anywhere else. While OpenSea and the like still hold some of the most in-demand NFTs, it is worth taking a look at your crypto exchange and finding out if they list any. You might just find some hidden gems or assets at a better price.
4. Futures Trading
For those willing to go big on their crypto Investments, futures trading is a great option. Futures trading is essentially agreeing to buy or sell a crypto at a certain price in the future and this allows you to maximize profit. Tokens can be leveraged for even hundreds of times their current value and many advanced traders are enthusiastic about this.
Many crypto exchanges also offer futures trading to investors, though there might be some limitations. For example, some exchanges require you to have traded above a certain amount or be part of its loyalty program before you can access future trading. Others are a bit more lenient with their rules so it is worth looking into what your specific exchange requires. And, of course, use this feature responsibly.
5. Lend Tokens
As much as many people want to buy crypto for different reasons, many also want to borrow them. Dedicated crypto lending platforms already exist but exchanges are also offering this feature. Using your crypto exchange to lend your tokens essentially means giving them to someone else in exchange for interest later on. These lending transactions are governed by both the exchange itself and smart contracts, so they are relatively safe. If you want to lend your tokens, find out if your exchange offers this as it saves you the trouble of opening an account with another platform.
6. Token Storage
One of the golden rules of crypto use is to never store your tokens on an exchange. The phrase ‘not your keys, not your coins’ springs to mind. However, exchanges have risen to the occasion and now offer self-custody wallets for users. This wallet is issued by the exchange but users have complete control over them. In the same way that an external hot wallet can be used as an extension on a browser or a phone app, wallets from platforms like Coinbase can be used and tokens transferred at will. This is a good option for those who don’t want to move their tokens outside of their preferred exchange and can be very convenient.
7. Spend Tokens
Did you know that crypto exchanges can offer avenues for you to spend your tokens? A quick look at Binance and other subject changes will show that they issue debit and even credit cards linked to your crypto wallet. With these cards, you can spend whatever tokens you want as easily as you would with fiat currency. Many of these even have partnerships with the likes of MasterCard, which means that the cards will be widely accepted. This offers consumers the chance to spend their crypto and not just trade speculatively, which expands on their use cases.
Conclusion
While crypto exchanges primarily facilitate the spot trading of cryptos, many have expanded their features to include all sorts of interesting offerings. From spending cryptos at will to staking them for profit to finding the next big token, there is little end to what you can do on your crypto exchange. Make sure to explore your platform of choice and you might just discover your new favorite feature.
