Security tokens have become one of the popular treats in the crypto space. Along with various available security tokens, many tokens are in their developing stage in the crypto industry. Hence, numerous investors are always looking for the most potential tokens in terms of investment making and profit generation.
However, a few kinds of tokens are accessible in the crypto market, and all of them are not equally potential. In the coming section, we will discuss the best five security tokens in the crypto space that have the potential to generate brilliant profit.
What is the security token?
Theoretically, the tokenized version of the conventional security assets is known as the security tokens that include stocks, options, bonds, ETFs, and futures. So, it is not surprising that these securities may turn into rivals and substitute for stocks and other security assets in the coming days.
Security tokens validate learning from the performance and permit dividend earning. However, these tokens are not precisely pure cryptos resembling BTC or LTC because pure cryptos have blockchains to run on. Hence, security tokens run on subsisting blockchains. Most organizations utilize ERC-20 tokens as they use smart contracts when it comes to executions. Also, ERC-20 is coherent with Ethereum and runs on the Ethereum blockchain.
Top five security tokens to trade & invest
The top five security tokens to trade and invest in must fulfill the requirement of being developed by utilizing blockchain and distributed ledger technology. They may bring great profits to the investors with their advantages of being traded effortlessly.
- SushiSwap (SUSHI)
- AAVE (AAVE)
- Compound (COMP)
- Cosmos (ATOM)
- Maker (MKR)
SushiSwap
What it’s about?
SushiSwap is a decentralized exchange also known as DEX. SushiSwap is Ethereum substantiated security token. It enables the exchange of cryptocurrency by exploiting the AMM formation. However, it provides various categories of services that get well along with the objectives of decentralized finance.
Most special aspect
SUSHI permits the clients to achieve rewards by participating in staking and liquidity providers inside the platform. Additionally, these tokens are vital for the protocol’s on-chain governance, achievable as the token holders possess voting power in decision-making for the protocol’s growth.
Price-performance
It has been trading below the $5.00 price area for an extended period of time. It has dropped significantly after rejecting the $16 price area in September 2021. However, the bulls are still trying to regain momentum.
SushiSwap price prediction 2022
SushiSwap price may reach at least the $5.00 price area in 2022.
AAVE (AAVE)
What it’s about?
Aave is established on Ethereum. It is a decentralized finance platform that permits clients to exchange a larger range of cryptos as loans, facilitating peer-to-peer lending via a crypto pool that substantiates smart contracts.
Most special aspect
Aave objected to removing any third-party involvement; therefore, they have 26 numerous accessible cryptos for the clients, which is the most notable aspect of Aave. Clients may utilize those cryptos for depositing and making profits via interest. Moreover, 25 digital assets out of 26 are available for borrowing there.
AAVE price-performance
It is currently trading around the $103.48 price area and trying to recover higher. After an impulsive bearish momentum, the price found support around the $55 to $75 price area.
AAVE price prediction 2022
AAVE price may reach at least the $250 price area again in 2022.
Compound (COMP)
What it’s about?
It is an Ethereum-based security token serving the role of governance token of the Compound protocol. The Compound is a series of decentralized interest rate markets enabling clients to deposit and borrow ETH tokens.
Most special aspect
The most special aspect of the Compound has a liquidity fountainhead for the users to lend and borrow cryptos. It allows users to obtain cTokens as the return against their deposit which they can exploit to purchase other cryptos at the compound platform.
COMP price-performance
Compound price is currently near the $68.45 price area and trying to push further downside. After rejecting the $170 price area, the price has dropped to the $55.00 price level, an all-time low.
COMP price prediction 2022
COMP’s price is expected to touch a maximum of $175.03 by the end of 2022.
Cosmos (ATOM)
What it’s about?
ATOM is a crypto that empowers the blockchain ecosystem developed to coordinate and communicate among them. The cosmos team is intended to develop an Internet of blockchains which means a blockchain network capable of interacting in a decentralized method.
Most special aspect
Cosmos can keep up the sovereignty of the blockchains allowing them to rapidly process transactions and interact with other blockchains in the ecosystem. It is the feature that makes Cosmos superlative for various uses.
Cosmos price-performance
Cosmos’ price is currently trading around the $10.85 price area and trying to continue further downward. After an impulsive bearish momentum, the price found support around the $8.60 price area. However, the bears are still residing in the market and may push further lower in the coming days.
Cosmos price prediction 2022
Cosmos’ price may reach at least the $20 price area in 2022.
Maker (MKR)
What it’s about?
Maker is a software platform under Maker Protocol that expedites the clients in terms of issuing and monitoring DAI. Maker is based on the Ethereum blockchain and a fundamental project comprising the decentralized organization MakerDAO. Being run on Ethereum, the MakerDAO possesses its native MKR, the ERC20 token.
Most special aspect
The most special aspect of the MKR security token is to assure the DAI remains pegged by the USD. It is known as the dual-crypto technique, which strengthens and holds back the volatility in terms of providing a more secure project to the users.
Price-performance
Maker price is currently residing near the $1,282 price area and trying to push further lower. After rejecting the $2,500 price area, the bears have regained momentum and pushed the price down towards January 2021’s low.
Maker price prediction 2022
Maker price may reach at least $3000 price area again in 2022.
Final thought
To conclude, security tokens are the smaller parts of an asset living on a blockchain. They have both the resources of conventional financial instruments and crypto-assets. Hence, it develops an optimism in some fans for the security tokens to be enhanced along with the financial markets.
Security tokens can be lucrative assets in the future for investing in enabling various options to earn simultaneously with conventional purchase and sale. The sector of the security token is currently in a building-up phase. So that a significant number of traders may have access to investments globally.
