A Beginner’s Guide To Security Tokens

You might not understand many financial terms when you are just starting your journey as an investor. However, that is okay as everybody has to start somewhere. If you have come across the terms ‘security tokens’ or ‘digital securities’ while researching the different ways to invest and have a mind full of questions regarding them, you’ve come to the right place.

To give you more clarity on this topic without further ado, here’s everything you need to know about security tokens -

What exactly are security tokens?

Digital securities are just another name for security tokens. These are financial securities that are present in the digital format and have a blockchain-based structure. This enables them to offer investors more liquidity and accessibility to the various investment options like stocks, funds, bonds, and other similar assets. Investing in security tokens is regulated in the majority of countries. ADDX is one such platform where investors can buy/sell digital securities and it is regulated by the Monetary Authority of Singapore (MAS).

How are these digitized securities useful?

Here are the major benefits of digital securities -

Cost-efficient

Digital securities play a significant role in democratizing the financial world by making these assets accessible to a larger group of people. With the help of these security tokens, one can start their investment endeavor for a far lesser price than the traditional physical assets that require a huge capital amount. For example, when investing in real estate, you do not need to buy the entire property anymore, with the help of digital securities, you can buy fractional pieces of the same and easily make real estate a part of your investment portfolio.

Please Read The Original Post Here: A Beginner’s Guide To Security Tokens



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