In the past couple of years, fake volume has been becoming a problem within the ecosystem of cryptoasset exchanges. The bang and bust of 2017-2018 led many exchanges to offer dubious incentives, in order to keep exchange volumes high and ostensibly healthy. But that trend is now largely in decline, according to the stats, opening the way for exchanges trading genuine volume to step back into the spotlight.
This is a good place to introduce the Tokens.net exchange, as one of their main selling points is an innovative way to verify the amount of volume traded on their platform.
All trading fees are paid in the platform’s native exchange token, DTR. This is the case because, even if the user pays their trading fees in the form of the crypto they are trading (for example, trading Bitcoin/USDT and paying trading fees in USDT), DTR is then automatically bought at market price with that crypto and used to pay the fee.
Every day, a fixed percentage of DTR used to pay for that day’s trading is burned. It is therefore possible to see very accurately how much volume was traded that day – intraday change in the price of DTR could muddy the picture a bit – by verifying through the Ethereum-based DTR smart contract that the amount was burned.
Before we get further into the feature list and details of Tokens.net, let’s cover the basics and what the setup experience is like.
US citizens, as well as citizens from a host of other so-called “sanctioned” countries (by the US or EU) are restricted from using the platform, although with basic registration there is no impediment to signing up for anyone.
Other than that, signing up is easy. Only an email is required, with no KYC requirements before $2,000 worth of withdrawals. The standard, minimum security feature of two-factor authentication (2FA) is mandatory, as well as an anti-phishing keyword defined by the user in the settings.
First and foremost, Tokens.net is an exchange. It weighs in as a more casual style of exchange, with some very streamlined features designed to make trading simple, pleasant, and fast. Only the essential order types – market and limit orders – are displayed, to keep the presentation simple. In fact, one of the first things we notice is that a standard chart is not immediately visible to the user after logging in; it’s there, but clicking on the chart button opens an entirely separate browser tab, and it is a custom – not TradingView – implementation. This setup clearly speaks to the intended kind of user of Tokens.net: casual to beginner.
Market orders, called “Click Trades,” are interesting and fun on Tokens.net. The user enters in the amount they want to buy or sell, and the exchange instantly displays the price it will be bought or sold at. This is not substantially different than any other exchange’s market order function, but it is well displayed here and very easy for entry-level users to understand.
The order book is similarly uncomplicated and pleasant to look at, with the total book size neatly displayed in the middle. There is a healthy selection of trading pairs (less than 100), with the base pairings being BTC, ETH, DTR (the exchange token), USDT and EURS trading against altcoins like Cardano, Stellar Lumens, and Binance Coin to name a few. Tokens.net is still pretty new, so trading volume is only going to go up from here.
This brings us to our next point: fiat gateways. Another of the main selling points of Tokens.net is credit card purchase of cryptos. And they can be bought wide a healthy array of fiat currencies, centered around northern Europe and the Baltics, where Tokens.net is based and registered.
Tokens.net are partnered with third party provider Safello, an EU-based payment gateway who allow purchase of Bitcoin with Visa and Mastercard, as well as several other EU-exclusive payment solutions. All of the transactions are regulated and require KYC, through YOTI, the details of which process are available in Tokens.net’s FAQ here.
Euro, British pound, Danish krone, Norwegian krone, Swedish krone, Hungarian forint, and Polish złoty are all accepted as forms of payment to buy Bitcoin, Ethereum, XRP and Bitcoin Cash. Only these leading cryptos can be bought with bank/credit cards. Simply from the euro and pound gateways, the chance exists for high liquidity on this exchange in the future. Buying with a credit card, however, will require a full KYC/AML processing, with the user required to submit government-issued ID documents.
If users use those credit cards to buy DTR (via BTC, ETH, BCH or XRP) , they gain access to another headlining feature of Tokens.net: loans. Users can take out loans from the exchange using DTR and only DTR, but the upshot is that there is no fixed limit on how much can be borrowed. The only limit is the user’s principal collateral amount of DTR, and the loan is paid out in euros or USDT.
The loans come at a cost of a 13% annual rate, and if the loan is eventually not repaid, the user’s principal position will get liquidated (reclaimed) by the exchange. We can see this almost as an implicit form of leveraged trading, with confident traders having the option to multiply their trading stacks instantly for more capital; although those funds can also be withdrawn from the exchange and used elsewhere.
There is a caveat here, though, in that the loan structure is also subject to price fluctuations of DTR. Because although the loan is taken with DTR as the principal, the loan itself is priced in terms of euro or USD(T).
Another feature that quickly sets Tokens.net apart is the free availability of a trading bot on-exchange. This is called the Market Maker Bot, whose function is as its name implies to keep an asset’s price trading around a specific range. The bot can be tuned to function across an array of circumstances: for example, to only buy or sell at a certain price (that is, to put up a buy or sell “wall”); to trade aggressively or conservatively; to trade at a certain rate per time period; and to trade a certain percentage of portfolio per trade.
Obviously, this is not the most sophisticated bot in the world, and other API bot services allow you to set up bots with infinite complexity. But the Market Making Bot is useful, and is – once again – perfect for beginner users just getting into trading. Furthermore, Tokens.net allows the user to integrate their own, custom bot via the API interface; and as such, almost infinite complexity is possible with custom bot scripting.
Finally, another feature perfect for beginner traders as well as more sophisticated ones is Tokens.net mobile app, available for both iOS and Android operating systems. The app enables crypto traders easy access to the live market with the utmost privacy and high security for funds, assets and personal data – although its best use case is perhaps as a great balance overview. The app itself has a user-friendly interface and covers all basic cryptocurrency exchange characteristics nicely packed with simple commands for buy and sell.
Tokens.net has a lot to offer to an EU-based novice crypto investor. It’s clean and fast and easy, and is the perfect sort of exchange to be a bridge from casual interest in crypto to an intermediate sort of participation in the world of trading and investing. Exchanges can be daunting the first time you ever log into one, but Tokens.net makes it as easy as it can probably be.
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