“How To Invest in STO: Security Token Investment” – Content:
- What is an STO?
- How to invest in STO?
- Best STO Platforms
- Why should you invest in STOs?
- “How To Invest in STO: Security Token Investment” – Conclusion
What is an STO?
STO stands for Security Token Offering and is a tokenized digital security token. You can sell them at Cryptocurrency Exchanges. They can represent real financial assets like stocks and shares. You can trade them securely and reliably. The reason for this is the use of a virtual blockchain ledger system to store and validate token transactions.
How to invest in STO?
If you want to invest in STO, you must first create an account with a qualified STO trading platform. I will show you which platforms are available later.
Once you have registered, your account will be verified. Most STO platforms have different types of verification. You must complete these in order to invest in an STO.
For example, verification of your account could consist of three stages. This means there is Tier 1, Tier 2 and Tier 3 legitimacy. Each level allows you to trade different or riskier STOs.
For example, to reach Tier 1, you must provide your first and last name. After reaching Tier 1, you can reach Tier 2. To reach level 2, you will need to complete an identity check and proof your address and your name. If you have successfully completed these steps, you will then move on to Step 3. This is the most difficult step and requires practical investment knowledge. This means that you have to complete tasks and answer questions.
If your knowledge is successfully tested, you will be accepted for level 3. After that, you can easily invest in STOs via the platform.
Best STO Platforms
Harbor is one of the most promising STO platforms. You can not only create Security Tokens, but also trade with them. Habor simplifies the tokenization process by creating a regulated token. This is also called an R token and is derived from the ERC20 token. The R token contains additional features that allow you to verify the services of the regulators or the on-chain “whitelist”.
Polymath is an STO blockchain platform founded by Trevor Leverkor. With Polymath you can combine traditional financial items with blockchain technology. The best part of the platform is the detailed guide for the entire tokenization process. It is very easy to understand and you can make almost no mistakes.
Securitize is an STO platform that allows you to create security tokens, providing you with a flexible and best-in-class back-end to bring STOs to market. What makes Secrutize so special is its ability to connect applications from other blockchains. This means that you can customize things like setting up customers, customizing interfaces, and working with third-party developers.
Swarm is a blockchain-based STO platform and works with the SRC20 protocol. This protocol allows you to tokenize any asset. This could not only be securities but also commodities or agricultural products.
So with Swarm you can easily integrate conventional capital into the digital space. This is possible because a clear market structure has been created for the blockchain. The SRC20 token is an extension of the ERC20 token. In addition to the features of the ERC20, it contains the legal structures, the location of the assets and the transfer rules.
Securrency enables both individuals and companies to create secure security tokens. Unlike most other platforms, Securrency offers a wide range of features. You can create Security Tokens, but you can also trade currency, bonds, funds and tokens.
Why should you invest in STOs?
STO are taking the crypto world by storm. But why are STOs so good? There are several reasons, which we will show you in the following:
It is much safer to invest in an STO than in an ICO or IPO. But what makes it safer? STOs are backed by real assets. This means that behind an STO there is not a fictitious but real value. Thus, the probability of losing everything is much lower. Moreover, you can sell STOs faster and easier.
In the case of STOs, Smart Contracts are used for the contract design and the blockchain takes care of the documentation. So, you no longer need banks or brokers. This means that an STO is much cheaper when going public. In addition, STOs can be traded much faster via a blockchain.
Because there are STOs on the blockchain and you can trade with them over this network, you have the possibility to trade around the clock. The Blockchain has no opening hours that you have to stick to. This availability brings additional liquidity to the market, which is favorable for the sale of STOs.
STOs have been certified by the Securities and Exchange Commission (SEC). This means that an STO complies with the rules and can be traded everywhere. This increases security and reduces fraud attempts.
“How To Invest in STO: Security Token Investment“ – Conclusion:
Investing in STOs is not hard to do. All you need is to register on an STO platform and verify your identity. Meanwhile there are many good STO providers with amazing STO platforms. All you have to do is choose the right platform. STOs is an investment trend in the crypto scene with many advantages and enormous potential. So give it a try.