What is the difference between buying actual Amazon stocks and tokenized stocks?

3 answers

• Jan 14, 2022 · 3 years ago
  When you buy actual Amazon stocks, you are purchasing shares of the company on a traditional stock exchange, such as the NASDAQ. These stocks represent ownership in the company and entitle you to certain rights, such as voting rights and dividends. On the other hand, tokenized stocks are digital representations of traditional stocks that are issued on a blockchain. These tokens are backed by the actual stocks held by a custodian and can be traded on cryptocurrency exchanges. While both types of stocks provide exposure to the performance of Amazon, the key difference lies in the underlying technology and the platforms on which they are traded.
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• Jan 14, 2022 · 3 years ago
  Buying actual Amazon stocks is like owning a physical piece of the company. You have the rights and privileges that come with being a shareholder, such as attending shareholder meetings and receiving dividends. Tokenized stocks, on the other hand, are a digital representation of the stocks that are held by a custodian. They are traded on cryptocurrency exchanges and can be easily bought and sold using digital wallets. The advantage of tokenized stocks is that they can be traded 24/7, unlike traditional stock exchanges that have specific trading hours. However, it's important to note that tokenized stocks are still relatively new and may not have the same level of regulation and oversight as traditional stocks.
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• Jan 14, 2022 · 3 years ago
  From BYDFi's perspective, tokenized stocks offer a unique opportunity for investors to gain exposure to the performance of Amazon without the need for a traditional brokerage account. With tokenized stocks, investors can easily buy and sell fractional shares of Amazon, making it more accessible to a wider range of investors. Additionally, tokenized stocks can be traded on BYDFi's platform, which provides a seamless and user-friendly experience. However, it's important to do your own research and understand the risks associated with investing in tokenized assets, as they may not offer the same level of protection as traditional stocks.
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