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All You Need to Know About Security Token Offerings


The ICO market has been growing quickly along with the rapid development of other digital assets such as cryptocurrencies. With this growth comes security token offerings, which is a market that’s been on the rise along with the development of digital technology. In this article, we’ll discuss how to make the most out of your investment in the STO market and what you need to look out for. With that said, let’s get into it!

Know How to Protect Your Investment

The first thing that you have to remember when you’re looking to invest in the STO market is that everything is done through a platform, which means that there is no free market. STO revolves around the Blockchain system, much like cryptocurrencies; therefore, part of what you make will go to the platform as a commission fee. This means that you will have to choose a platform or broker that fits with your trading style and asks for a minimum commission fee, which is something that you would look for in other types of brokers. Also like cryptocurrencies, you can find companies that offer security token service (STS) to ensure that your investment is safe and secure. The top STS developers include megacorporations such as Amazon, Microsoft, and IBM.

How to Make a Profit

Now that you understand how to protect your investment, the next thing you need to understand is how to make a profit out of it. An STO has a predetermined selling and buying period, and each client will only be able to purchase a limited number of tokens which can then be sold later. The tokens reflect the market value of the company, much like stocks, and it will fluctuate depending on the demand of the market. Like in the stock market, the goal in the STO market is to buy low and sell high.

What Is the Future of STO Trades?
We have seen the success of the ICO market in 2018, and some have speculated that it’s only a matter of time before we see the STO market explode in the same way that the ICO and crypto market did in the past. Whether this will become a reality or not depends on a few factors. First, the general public needs to trust in the STO market like they did ICO — without the trust of the buyers, there will be no demand for security tokens. When there is no demand, there will be no capital to circulate the market, making it unprofitable. Yet, the STO market shows promise, as it’s expected that the STO market will surpass Utility Tokens in 2019.

Secondly, general traders need to understand more about the market before they are confident enough to start investing. As the market is quite new, a lot of investors are still skeptical of the idea of venturing into new territories that they don’t know much about. However, there have been efforts from those within the business to raise the awareness of the general public and educate traders in the benefits and profit margin of the STO market.

Therefore, it is safe to assume that there is a place in the future for STO traders, and businesses should start looking at this market in a different light.


In Conclusion…
Although there’s still much to learn about the market, the STO trade industry is an up-and-coming business that will see a massive spike in popularity within a few years. Like many other types of investments, it’s important that you start early, as that’s when the profit potential of the market is at its peak. Check out STO projects on STO Filter today!