Is investing in exchange tokens profitable?

[TheVeteranAngel]

If we are to consider the top 3 exchange tokens, Binance BNB, OKX OKB and Bitget BGB lead the race with BNB 5th, OKB 38th and BGB 61st according to coinmarketcap ranking.

Going by history, BNB was launched in July 2017 around $0.11 but reached an ATH of $686.31 on May 10, 2021 just after three years. Currently trading above $550, BNB has established itself as one of the top asset class to hold for many people coming into the crypto space. Can only imagine what to expect in this coming bullrun.

On the other hand, OKB was officially launched on March 2018 around $0.6 and have since witnessed remarkable growth reaching an ATH of $73.83 on March 13 2024 but currently trading around $56.63. That's quite impressive considering the listing price.

Lastly, BGB the native token of Bitget was launched on July 26 2021 at the rate of $0.05850. it gain adoption quickly and has been performing since then. The token has reached more than 15 new ATH from 2023 till date reaching multiple ATH in the last 24hrs. The current ATH stands at $1.37 but currently trading at $1.319. With a current mcap of almost $2B, the price is relatively low compared to the first two making it easily affordable to buy and hodl for future gains.

Although there are other exchange tokens that are also performing well but this three looks the best investment option looking at their respective ecosystem growth hence I feel they are good investment option with growth potential but I will like to hear your opinions. Do you HODL any of this tokens and what are your price expectation ahead of the upcoming bullrun.

[1714550674]

1714550674

[1714550674]

1714550674

[1714550674]

1714550674

[1714550674]

1714550674

[1714550674]

1714550674

[sokani]

Ah no dey try to discourage you but wetin I want talk be say investment na risk and the way e happen for BNB and OKB, e fit no happen with Bitget token because e get oda exchange tokens wey no dey do well too like Digifinex token, coin cash (Cointiger), Bkex, Bitforex token etc. The main thing wey make BNB coin explode na wen Binance launch their own BSC blockchain wey dey faster and dey cheaper in fees than ETH network. Bitget exchange dey try, dem dey 4th by coinmarketcap ranking, dem get their own wallet and dem fit come up with a service wey go help their token appreciate more in price, so you fit gamble on am.

[Wiwo]

Exchange tokens may be a good investment decision at least for long term based and if you have taken the time to look at the historical records of most lf the prominent exchange tokens, you will see that the took a long time before building their current price list level, due to gradual growth mechanism so 8f you are looking for short term profits then exchange tokens may not be good for you and only long term investment is what gives the appropriate timeline for the growth of that tokens.

What make exchange token to have high potential to grow is because of the feature that the coins carries,  take BNB for example, BNB is use to provide liquidity for the world biggest exchange and it smart chain, so that ecosystem is enough to build the coin value a d increase the demands for long term.

[Makus]

Anything altcoin investment, you supposed to know say na better risk be that. But when e dey come from exchange, to some extent e dey prove to be potential coin, but should incase anything thing like hack occur for that exchange we know say the price of their token go drop well well. However for the potential aspect, based on the fact say na exchange naim get the coin, Dem go like to do am well because, no be project for testing their development skill, them create the project because them don make name already.

Considering binance token BNB if to say person invest for that coin when e been dey $10 sef you for don get 5500% profit, if you be patient and long term holder. So no be trading be everything, most coins just requires you to hold for long term and you go definitely get the benefits from am.

[EL MOHA]

Exchange tokens are just like the other Altcoins that you trade they carry same risk. No one will actually give you a specific advice as to why it is good or not it highly depends on your research. If you want to invest in newly exchange tokens you look at their tokenomics and the narratives that is driving them. You can go by looking for what problem they are coming to solve, example is the BNB whose recognition was increased due to their blockchain which solves the high gas fee issue face by the former blockchain Ethereum. Also the exchange was a huge one but that’s not an excuse. Don’t invest because it is a big exchange only get your findings well before going in.

Also one thing is we all know how this tokens take longer time to pump to a significant amount but I will advice any one involve to take profit when they see some opportunities because the tokens can fall should the exchange face any Sanctions too. A clear example is the FTT coin which belongs to FTX exchange immediately took a big hit when SBF got arrested. Another example is the KuCoin KCS which dump immediately the news of its staffs facing money laundering charges were out. So know when to take profits mate

[Mate2237]

Investing in exchange project e better pass all those airdrops memecoins and shitcoins. BNB is very slow in movement and I think OKB is more faster than BNB. But if you like to invest, I will advise you to invest in OKB instead of BNB because since BNB is not accepting peer to peer again in the country di matter go fit affect you although people dey save coins there and transfer it o another exchanges and sell or trade am there but dat one now na extra cost for the person.

And before you invest in any cryptocurrency project make you do some investigation or research on the project oh. Me I go invest on Ethereum without doing any investigation because na someone recommend am give me so I was thinking dat everything e dey okay. Omen when I invest finished I co.e dey discovered say their transaction fee na die and dem cut 15k from me. Omen I vest tire. So no go invest without research even though someone recommend am give you.

[Benedictare]

   Investing in tokens are good investment for someone that wants to have a long term investment .
Tokens used to provide a users to use a platform or reward users for their been part in the platform.

Exchange tokens give encouragment for users to use the exchange, and they are also used to reward users for their loyalty. They are often used to fund development and marketing efforts, as well as to provide liquidity to the exchange. The performance of these tokens nevertheless have significant impact on the success of the exchange and how investors perceive the exchange. As such, exchanges operators will monitor the performance of their tokens and take steps to ensure that they remain attractive to users.

There is nothing such as “a good investment”
As long as investment is concerned , all investments either by buying Gold , Investing in Buildings, company, big jets etc.. all come with a particular level of risk(losing some or all your capital) , in fact all investments in its nature is risky , Your concerned shouldn't be whether its good or not but rather the level of risk .

You can start testing the depth of the water by putting in one leg(investing small capital which you are willing to lose ) and see how far it goes.

[Iamcrypticguy]

Exchange tokens may be a good investment decision at least for long term based and if you have taken the time to look at the historical records of most lf the prominent exchange tokens, you will see that the took a long time before building their current price list level, due to gradual growth mechanism so 8f you are looking for short term profits then exchange tokens may not be good for you and only long term investment is what gives the appropriate timeline for the growth of that tokens.

What make exchange token to have high potential to grow is because of the feature that the coins carries,  take BNB for example, BNB is use to provide liquidity for the world biggest exchange and it smart chain, so that ecosystem is enough to build the coin value a d increase the demands for long term.

You're correct, mate. Use cases are one of the reasons that make exchange tokens soar. Most of the exchange tokens are doing well at the moment, but from analysis, BGB has outperformed them all, making about 200% in one year. I bought some around 0.5 cents a while back, and now it's comfortably trading over $1.2. I believe this is due to features you mentioned like participating in staking rewards, free daily withdrawals, trading discounts, etc.

[Jegileman]

Although there are other exchange tokens that are also performing well but this three looks the best investment option looking at their respective ecosystem growth hence I feel they are good investment option with growth potential but I will like to hear your opinions. Do you HODL any of this tokens and what are your price expectation ahead of the upcoming bullrun.

When we are discussing about investment, I don’t look at them as a single entity base on where they originate from but see it as a general term for all cryptocurrencies. Just like any other crypto asset that are not native token of exchanges, they experience volatility and they can either go up or down in prices base on what the market is reacting to. Exchange tokens are not bad tokens even though they are all altcoins in general, but investing in them should be at the risk of the exchange not collapsing or having a negative news been attached to it. The can easily react to news that talks about the exchange either a positive or a negative one.

If I am to invest in an exchange token, it will always be that I take profit timely because of how volatile they are and does not only obey the market trends alone but also other external factors can easily affect it and crash to a very low level unexpectedly. To be safe with them, try and take profits when you see one and be conversant with news surrounding those exchanges, both good and bad news because that is what will give you an insight of when to stay in the market longer or leave the market immediately to avoid loss of funds as a result of those news.

[CryptoHeadlineNews]

Going by history, BNB was launched in July 2017 around $0.11 but reached an ATH of $686.31 on May 10, 2021 just after three years. Currently trading above $550, BNB has established itself as one of the top asset class to hold for many people coming into the crypto space. Can only imagine what to expect in this coming bullrun.

The truth of the fact is that BNB was able to rise and become successful today due to the influence of it's native exchange Binance, which was known back then and still now to have the highest Bitcoin/crypto trading volume, and a pioneer exchange token if not the first if I'm not mistaken.
So in regards to second question about what price to expect this bull-run, I will roughly say if only Bitcoin can hit $100k just as predicted by many, then let's expect to see BNB hit $800

Although there are other exchange tokens that are also performing well but this three looks the best investment option looking at their respective ecosystem growth hence I feel they are good investment option with growth potential but I will like to hear your opinions.

The potentiality of an exchange token is dependent on how large it's exchange community is, because the larger and bigger an exchange is, the  more higher it's token likely to become very successful in the market after launching. Hence, always note that investment is a risk, and only those who are willing to bear the risk should always give it a try.

[Charles-Tim]

Investing in exchange project e better pass all those airdrops memecoins and shitcoins. BNB is very slow in movement and I think OKB is more faster than BNB. But if you like to invest, I will advise you to invest in OKB instead of BNB because since BNB is not accepting peer to peer again in the country di matter go fit affect you although people dey save coins there and transfer it o another exchanges and sell or trade am there but dat one now na extra cost for the person.

You can still be able to sell BNB on Binance and few other exchanges. So what should this do with P2P on Binance that was disable for Nigerians not to access? In marketcap, BNB is the fourth largest cryptocurrencies. But I will not advise anyone to go for those centralized coins because bitcoin is more decentralized.

[DaNNy001]

Investing in exchange project e better pass all those airdrops memecoins and shitcoins. BNB is very slow in movement and I think OKB is more faster than BNB. But if you like to invest, I will advise you to invest in OKB instead of BNB because since BNB is not accepting peer to peer again in the country di matter go fit affect you although people dey save coins there and transfer it o another exchanges and sell or trade am there but dat one now na extra cost for the person.

You can still be able to sell BNB on Binance and few other exchanges. So what should this do with P2P on Binance that was disable for Nigerians not to access? In marketcap, BNB is the fourth largest cryptocurrencies. But I will not advise anyone to go for those centralized coins because bitcoin is more decentralized.

So because they are centralize they are not advisable to buy? Well I think some of these centralize coins are worth buying even though they are centralize especially in a pump period like this. Binance is already big exchange and they are already alot of investors buying their BNB coins which has already given it such high market cap value but the only disadvantage is that if anything happens to the exchange your coins will also be greatly affected or even lost forever.

[Jaycoinz]

The current position of BNB is enough reason to answer your question. Starting from when the coin was launched till today it has made a significant impart in the crypto network and even a big plus up to its investors. If you aim at gaining profits from an exchange token then you just have to exercise patient and make a long term investment. Those who got I to the market early can and kept to their holding would definitely make more than a thousand percent profit from the token. It all depends on the investor, if he wishes to make profits them he'll buy when the price is low and keep holding because, exchange native tokens are long term projects for investment.

[Charles-Tim]

So because they are centralize they are not advisable to buy? Well I think some of these centralize coins are worth buying even though they are centralize especially in a pump period like this. Binance is already big exchange and they are already alot of investors buying their BNB coins which has already given it such high market cap value but the only disadvantage is that if anything happens to the exchange your coins will also be greatly affected or even lost forever.

You have answered your question yourself and I bolded it for you. If the exchange got into a problem, there is possibility that the problem may lead to a significant fall in the coin price just like what happened to FTT when FTX imploded before it started rising again. Also as the coins are getting larger marketcap, they are not performing like bitcoin or their performance is similar to bitcoin performance. The ones with small marketcap may have huge volatility which could be a total loss during bear market.

[kentrolla]

The outcome of exchange tokens are purely dependent on how the exchange has been performing as it will be trending high if the exchange is famous and have more liquidity like Binance but at the sametime there is a larger risk involved as the coin can fail if the exchange is not performing upto the mark, centralized exchanges with good trading volume have higher chances of being profitable but low liquidity exchanges and DEX won't worth it.

[Churchillvv]

So basically, exchange tokens are altcoins and it's always advisable to trade with cautions when it comes to altcoins but as we Nigerians we like to take opportunity and this exchange tokens are also opportunities that comes ones in a while after looking at the history of the three exchange mentions I'm convinced that the last one will also do well in future and as such you can invest on it. Perhaps that should only be if you have enough funds to wager around because I know that but those tokens are more like taking a whole lot breakable plates in one hand, it might profit, it may not too. It's a two way stuff.

Here we can only give you advise but it doesn't mean we are correct, it's all our biased suggestions either based on experience or based on what we hear from others but I like you to take a bold step with your extra cash not what you can not afford to loss, but any extra funds that you might consider not really relevant then put them there, and give it time to see how well they will do.

[7juju]

You have mentioned some of the exchanges that their coins are doing well. No doubt some of these exchange coins are doing fine, but the ability to catch them when they are still at their early stage. Numerous exchanges lunched in the past and many of them have gone under the radar and they are no where to be found. Investing in an exchange coin does not guarantee profitability. Like the case of Fxtm and many others, investors lost money and many more. But if one can get an exchange coin that's reputable from the very beginning, it will be a good investment. But the challenge is knowing which exchange will stay and do well.

[TheVeteranAngel]

You have mentioned some of the exchanges that their coins are doing well. No doubt some of these exchange coins are doing fine, but the ability to catch them when they are still at their early stage. Numerous exchanges lunched in the past and many of them have gone under the radar and they are no where to be found. Investing in an exchange coin does not guarantee profitability. Like the case of Fxtm and many others, investors lost money and many more. But if one can get an exchange coin that's reputable from the very beginning, it will be a good investment. But the challenge is knowing which exchange will stay and do well.

Knowing the right exchange token to invest in is not a difficult task in my opinion. You just need to check the growth rate and the ecosystem development of the exchange, check the tokenomics of the coin and their use cases and check the integrity of the exchange over a period of time. Personally I have found BGB to be the next big exchange token in few years from now because the price is still very relatively low compared to other exchanges but with a significant market cap due to massive adoption rate. The exchange token according to tokenInsight publication in February has been the highest exchange token gainer in 2024 and was also second highest gainer in 2023 increasing from first to the last quarter despite the bear market at that time. So i think the exchange growth has also been playing massive role in the adoption of the token and with the current expansion into different part of the world, we might see BGB in the first top 20 cryptocurrency in few years to come.

[TheVeteranAngel]

The outcome of exchange tokens are purely dependent on how the exchange has been performing as it will be trending high if the exchange is famous and have more liquidity like Binance but at the sametime there is a larger risk involved as the coin can fail if the exchange is not performing upto the mark, centralized exchanges with good trading volume have higher chances of being profitable but low liquidity exchanges and DEX won't worth it.

I quite agree with your submission. Binance has the highest liquidity among centralized exchanges hence the reason why BNB has gained so much and the price is high. Looking at the price of Bitget BGB which is still less than $1.5 with a good mcap of almost $2B with the exchange rated among top 10 exchanges according to coingecko, I have a feeling they might be like Binance in the near future looking at the giant stride the cex has been making in the last couple of years. What do you think?

[Bournesparks]

So basically, exchange tokens are altcoins and it's always advisable to trade with cautions when it comes to altcoins but as we Nigerians we like to take opportunity and this exchange tokens are also opportunities that comes ones in a while after looking at the history of the three exchange mentions I'm convinced that the last one will also do well in future and as such you can invest on it. Perhaps that should only be if you have enough funds to wager around because I know that but those tokens are more like taking a whole lot breakable plates in one hand, it might profit, it may not too. It's a two way stuff.

Here we can only give you advise but it doesn't mean we are correct, it's all our biased suggestions either based on experience or based on what we hear from others but I like you to take a bold step with your extra cash not what you can not afford to loss, but any extra funds that you might consider not really relevant then put them there, and give it time to see how well they will do.

You've spoken well. Basically, when an exchange is growing and expanding, its token follows the trend. Extensive research is needed, actually. I missed out on BNB at $30 because I felt it was too high, and I watched it reach the peak of $600 some years back. So, when I came across Bitget's BGB, I did my research at the time, and I was kinda convinced due to some factors, but mostly because of the benefits that come to holders. You know, everyone likes freebies, so holding a token that affords extra benefits while you also earn from price action would always be catchy. And I added some to my portfolio around 0.6 cents . Right now, it's trading over $1.2 with a higher probability to do more as the exchange grows and more utilities are added to the token. But always DYOR. NFA.