What is Spotify?
Spotify Technology SA is a Swedish company established in 2006 by Daniel Ek and Martin Lorentzon. Its main headquarters are located in Stockholm, Sweden and there are more than a dozen offices around the world.
Spotify is a company managed by Spotify AB. Through the Spotify platform, the company offers digital streaming services. It enables users to access a vast number of songs, podcasts and videos from different artists in one place. The services can be accessed for free through a Facebook account or by signing with an e-mail address.
Apart from that, Spotify has created several paid packages with different features. It also compensates the artists or the rights holders of the streamed songs. The royalties are paid based on the defined calculation methods or arrangements made by Spotify and the rights holders.
Past performance of Spotify stock price
Spotify became a publicly-traded company on 3 April 2018 when the Initial Public Offering (IPO) took place with the expectation that 90 per cent of its shares would be available for trading. The company decided to do its IPO through direct listing instead of going to underwriters. Spotify is traded on the NYSE under the ticker SPOT.
The anticipated reference price for a Spotify IPO was set at $132 (£100), but the stock opened at $165 (£125). Since it went public, the Spotify stock price has hit the lowest price on 24 December 2018 when it fell to nearly $100 (£75) and it reached a peak of $300 (£228) on 22 July 2020.
Spotify value has been moving in a broad range from $100 (£75) to $160 (£121) for more than two years, forming strong upward and downward trends on regular bases. The price broke the sideways movement and experienced a significant increase in a relatively short period.
The price movement of SPOT is under the pressure of multiple factors. Some of the most important ones are the number of subscribers and the ratio of paid vs free subscribers, revenue from paid subscriptions, the revenue generated from ads and the royalty payment programs.
How to invest in Spotify stock
The most fundamental and traditional way to invest in Spotify stock is to purchase it directly on NYSE and become a shareholder. The problem with this option is that it may require some paperwork (usually completed by your broker), you will have to pay brokers fees and your earnings are limited by the amount you can afford to invest.
Another option for traders to invest in Spotify stock is to trade some classic derivative instruments (options, futures, etc.). You can also trade some of the cutting-edge derivative instruments. One of the options is to buy tokenised assets offered by Dzengi.com trading platform. Dzengi.com has tokenised the real-life assets using blockchain technology, which enhances the process of storing and recording data. The tokens are instruments that mimic the price movements of the underlying assets and traders can make profits without the need to directly own the specific share or any other type of instrument.
Dzengi.com offers the possibility for traders to purchase tokenised assets directly with crypto such as Bitcoin, eliminating the need to convert crypto holdings into fiat money first.
Another appealing feature of tokenised assets is the size of the leverage. Traders can open larger positions with the five per cent margin defined by Dzengi.com.
For example, a trader has $500 (£380) available for trading Spotify shares which are priced at $250 (£190) with an anticipated price movement of 10 per cent. Two shares can be purchased (not accounting for broker fees) for the available capital and a 10 per cent increase would bring only $50 (£38) profit.
But using five per cent margin with $500 (£380) of available capital traders can open a position worth $10,000 (£7,600) with tokenised Spotify shares. The 10 per cent movement would potentially bring a profit of $1,000 (£760).
Trading tokenised shares is executed in pretty much the same way as trading other instruments where you speculate on the future price movement. But they offer numerous additional benefits which could augment the trading experience.
Tokenised Spotify stock trading guide
Trading tokenised Spotify stock is no more difficult than regular shares. To begin trading a tokenised asset, you will need to follow some simple steps:
- Step 1: Register for an account with Dzengi.com.
- Step 2: Deposit funds (with crypto or fiat) in the account.
- Step 3: Determine the position size desired, accounting for leverage offered by Dzengi.com.
- Step 4: Determine your trading position (long or short) based on expected share price movement and purchase tokenised SPOT shares derivatives.
- Step 5: Dzengi.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- Step 6: Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position.
Why trade tokenised Spotify shares with Dzengi.com
Spotify stock trading at Dzengi.com tokenised asset exchange has a number of advantages. Tokenised asset are underpinned by robust and secure blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying asset price.
- One-stop crypto trading platform
Trade tokenised Spotify shares with Bitcoin or Ether. Benefit from the stock's price movements without turning your crypto assets into fiat.
Trade tokenised shares with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top markets, like SPOT, with up to 1:100 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.