Tokenised assets explained (Lesson 1)
In this lesson you will learn
- What are tokenised assets
- How does tokenised assets trading work
- Tokenised assets trading tips
- The advantages of tokenised assets trading
What are tokenised assets
Bitcoin ranks first among cryptocurrencies by market capitalisation — about 60% of the entire crypto market. The US dollar is the world's main reserve currency. Together, these two factors make the BTC/USD pair the standard for quoting bitcoin on most cryptocurrency exchanges.
Market participants often regard the price of bitcoin in dollars as an indicator of the state of the cryptocurrency market as a whole.
Factors affecting the bitcoin to dollar rate
The dynamics of the BTC–USD pair are influenced by a number of factors, which can act in different directions:
Macroeconomic. Fed interest rate decisions, the inflation rate and the state of the economy. Changes in monetary policy affect the balance of demand between traditional and alternative assets.
Regulatory. Decisions by regulators in major countries regarding cryptocurrencies — from tightening to liberalisation — can cause significant price fluctuations.
Technical. Bitcoin protocol updates, changes in mining difficulty and the distribution of large positions among market participants.
Market. Trading volumes, fund flows into and out of cryptocurrency funds, and the general sentiment of market participants.
It is important to keep in mind that these factors interact with each other, and their combined effect on the price is not always predictable.
How does tokenised assets trading work
Trading platforms let you open both long positions (long — betting on a price rise) and short positions (short — betting on a price fall). This does not mean that one direction is preferable to the other: any position carries a risk of loss if the price moves the opposite way.
Leverage
Leveraged trading increases both the potential profit and the potential loss. When using leverage, it is critically important to consider the position size relative to your capital, use stop-losses and understand that funds can be lost quickly, especially in a volatile market.
Volatility
The BTC–USD market is characterised by high volatility. Intraday swings of several percent are common, and in periods of heightened uncertainty the moves can be significantly larger. Volatility is not only a property of the market but also a risk factor worth considering before making decisions.
Tokenised assets trading tips
The BTC–USD pair is available for trading on the Dzengi.com cryptoplatform. The platform provides a bitcoin rate chart with technical indicators, timeframe settings and analysis tools. The bitcoin rate online is updated in real time.
Dzengi is a resident of the High-Tech Park and operates in accordance with the legislation of the Republic of Belarus.
The advantages of Dzengi’s tokenised assets trading
Dzengi’s tokenised assets are underpinned by robust and immutable blockchain technology. Making a transaction will give you a token that moves according to the underlying instrument’s price. Crucially, they enable investors to benefit from market-wide price action without turning your crypto portfolio into fiat.
-
Regulated by law
Dzengi crypto exchange operates in accordance with the new Belarusian legislation and fully complies with key AML and KYC guidelines
-
Openness and transparency
We notify you about all fees and legal matters in advance
-
Competitive spreads
Prices are formed through a competitive bidding process based on orders received from our clients and liquidity providers
-
Leverage
Traders can trade tokenized assets on the world's leading markets with leverage of up to 100x
