As basic economic principles suggest, undervalued assets quite often have rather high growth potential in store. Now it may be the right time to buy one of such kind.

With the advent and further development of Internet the way people are exchanging data and value has been transformed. Now cryptocurrency receives the baton and opens new ways to fund projects through the sales of crypto coins or digital tokens, upgrading the economic and financial world.

Tokens or Coins? What’s the Difference?

Even though digital coins have been introduced in the market recently, at first being connected with cryptocurrencies – like Bitcoin, now, they are used to serve specific purposes and represent different assets on a blockchain.

In simple terms, virtual tokens and coins describe units of blockchain value. However, a coin can be viewed as a means of payment, a form of money storing value, while a token has a broader functionality. Tokens are a representation of a utility or assets that are tradeable – everything from commodities to loyalty points to even other cryptocurrencies.

On Chronobank it is pointed out that:

“In practice, the line between coins and tokens is not clear and sharp. Both are used to transfer value, as a means of payment, in a similar way to that both USD and shares are used to reward people for work (though predominantly the former).”

Finally, there are also reputation and reward tokens, which are given as rewards to users on a platform. They can symbolize a user’s reputation or just be used as a reward for being active on a specific blockchain platform.

Consider Cobinhood, the first zero trading fee exchange platform, that uses their COB token to create trustworthy and healthy financial opportunities. To be more precise, the platform makes users eligible for several privileges including, but not limited to: 50% off margin trading loan interest when paying with COB tokens, and possibility to get future ICO tokens at significantly lower rates. These are some of the benefits that participants will have.

Why Buy Undervalued Tokens?

When it comes to simple economics, we assume that the price of an asset on the market is determined by supply and demand. Once the demand rises, the supply shortens, and the price of that asset begins growing steadily. In crypto-economics, the approach is similar, meaning that an excessive increase in the turnover of tokens on the market will inevitably lead to depreciation. As a result, buying a token when the price is low, can lead to an increase in value afterwards.

In this regard, Cobinhood has a total supply of 1,000,000,000 COB, and the rate is $0.102383 USD, therefore investors, or users on the platform have a chance of buying low, expecting for the value to rise.

In relation to this, let’s recall an interesting success story of Christoph Koch, who in 2009, while working on his BA thesis, found out about Bitcoin and decided to invest 27$ for 5000 bitcoins. He completely forgot about his investment until a few years later, when news about Bitcoin came into light. He then checked his encrypted wallet to be completely blown away by the fact that he had almost 900 thousand dollars in his account.

Of course, not everyone is so lucky, but this doesn’t mean you can’t boost your profits with cryptocurrencies as long as you understand how they work, and how you can benefit from them.

Cobinhood – Making a Name on the Market

One of the reasons why this crypto catches attention is because of its CEO, Popo Chen, who didn’t want to be average, and introduce just another impractical platform; on the contrary, he analyzed the real issues impacting the current online exchange system, and came up with practical solutions.

He clearly sees frequent and serious problems in the virtual currency and trading ecosystem, which are mainly connected with low liquidity, real-time trading related issues, asset security issues, shutdown without warning, low FIAT currencies, and many others. As a result, he created and introduced the right features for his platform, to show that all these obstacles can be overcome in a professional and responsible manner, for all that with added bonus – 0 transactional costs.

Here are some of the most reliable and useful features, which, according to the project’s white paper, Cobinhood brings to the table: 100% reserve guarantee, offline multisig wallet security system, crypto assets backed by insurance, distributed order matching engine, along with a wide range of FIAT currencies supported.