Centralized exchange tokens have become golden tickets for traders looking to maximize their experience on trading platforms. From binance coin (BNB) and KuCoin token (KCS) to MEXC (MX), these utility cryptos offer a plethora of perks that can make your trading cost-effective and seamless.
Whether you’re interested in reduced trading fees, early access to hot new tokens, or bonus rewards, owning some of these top centralized exchange cryptocurrencies can be a game-changer for both newbie and seasoned traders. So, let’s dive into the intriguing realm of exchange platform native cryptos and their varied use cases.
What is an exchange token?
An exchange token is a special kind of cryptocurrency made by a crypto exchange. These tokens, often called centralized exchange tokens or CEX tokens, offer various perks. You can get reduced trading fees, early access to new coins, or even voting rights on platform changes.
These tokens are not just for trading; they have multiple use cases that make the exchange platform more enjoyable and efficient for users.
Note that the exchange token can become useless and worthless if the exchange is hacked or goes bankrupt, as was the case with FTT following the FTX collapse. As of late October 2023, BNB is the top centralized exchange token by market cap, as per CoinMarketCap data.
Here is a list of the usual benefits of holding such an exchange token in your account:
- Reduced trading fees
- Voting rights. Some tokens let you vote on new features or coins to be added to the platform.
- Early access. Get first dibs on new tokens or features before they’re released to the general public.
- Bonus rewards. Earn extra tokens or higher returns from staking, liquidity pools, or other financial activities on the exchange.
- Exclusive promotions: Access to special offers, contests, and airdrops available only to token holders.
- Enhanced customer support. Faster or premium customer service for token holders.
PayPal’s introduction of PYUSD, their new stablecoin, marks a significant step in bridging the gap between traditional finance and the crypto world. Developed in partnership with Paxos, PYUSD is a compliant stablecoin that integrates seamlessly with PayPal’s vast network. This initiative allows users to pay with crypto wherever PayPal is accepted, effectively addressing the merchant problem in web3.
In addition to its use in CeFi and DeFi, PYUSD’s unique selling proposition is its ability to be swapped within the PayPal ecosystem. Users can send cryptocurrency to their PayPal account, convert it to PYUSD, and then use it for transactions anywhere PayPal is available.
- Use crypto for payments anywhere PayPal is accepted
- Seamless integration with existing PayPal accounts
- Addresses real-world usability of cryptocurrencies
- Limited to PayPal's ecosystem and acceptance
KuCoin, a cryptocurrency exchange launched in 2017, offers its native token called KuCoin Shares (KCS). If you own KCS, you get a number of perks including discounted trading fees, special bonuses, and even a slice of the exchange’s overall trading revenue — KuCoin actually shares 50% of it with KCS holders. Plus, the more KCS you hold and use on the exchange, the bigger discounts and rewards you receive.
KCS a potentially good investment is also deflationary in nature. KuCoin has a plan to keep reducing the total supply of KCS until it reaches 100 million tokens, making each one more valuable over time. The exchange even uses a portion of its quarterly profits to buy back KCS tokens and remove them from circulation.
- It is linked to Kucoin Exchange, a stable, worldwide platform.
- Rewards on KuCoin exchange
- Exclusive access to KuCoin Spotlight
- Discounts on trading fees
- Limited pairs are available outside the native exchange.
The OKB token (OKEx token) is a digital asset created by the OK Blockchain Foundation and the popular OKX crypto exchange (former OKEx). As the native coin of the OKT Chain, the OKB token is also used to pay gas fees for on-chain transactions.
If you hold OKB (OKEx token) in your OKX account, you will receive discounts and rewards on the crypto exchange. You can use them to pay for your trading costs on the exchange, take part in voting about how the platform should run, and even get some rewards just for holding onto these tokens. OKX exchange is one of the top crypto exchanges worldwide and we consider OKX to be one of the best exchange tokens.
- Offers discount on trading fee discounts
- OKX Earn passive income
- Offers access to token sales
- Must keep it in your exchange account to benefit from discounts
The INX token is special because it’s the first digital coin approved as a security by the U.S. government’s finance watchdog, the SEC. This makes it more trustworthy than many other tokens. Plus, if you own INX tokens and use them on the INX.one trading platform, you get a big discount — up to 40% off on the fees you’d normally pay for trading stuff like cryptocurrencies or shares.
The token also uses advanced, secure technology. It’s based on the Ethereum blockchain, a popular platform for digital coins, and has special features that add extra security.
- The first SEC-registered security token to IPO on the blockchain
- Real-world assets
- Growing value
- Price swings
- Limited offerings
The MX Token is a standout choice among centralized exchange tokens. First, it’s more than just a digital coin; it’s the powerhouse behind the MEXC trading platform, giving you special perks like voting on company decisions and getting first dibs on new activities. On top of that, it actively helps grow the MEXC ecosystem. The platform itself is super versatile, offering everything from basic buy/sell transactions to advanced futures trading and tools for decentralized finance (DeFi).
Second, the MX Token is built to gain value over time. It’s deflationary, meaning the company buys back and burns some tokens, reducing the overall number available and potentially making each one more valuable. Plus, it’s been security-checked by experts, runs on the well-known Ethereum blockchain, and is backed by a team with solid tech experience.
- Strong community support
- High potential to grow
- Lack of adoption
- Regulatory uncertainty
Binance coin, also known as BNB, ranks among the world’s top 5 digital currencies. It’s closely tied to Binance, a popular trading platform that connects buyers and sellers quickl, thanks to its abundant cash flow. Plus, you can even use it to invest in new startups through the Binance Launchpad program.
Binance itself is committed to boosting BNB’s value, regularly buying back and burning some of the tokens. Note that the offerings might be different on Binance and Binance US.
- One of the most popular utility tokens
- Binance has a unique burndown policy
- Offers discounts on the Binance platform
- Discounts can decrease over time
- Binance has a different version for U.S. users
BGB isn’t just any crypto token. It’s the backbone of the Bitget exchange, a platform designed to make crypto trading easy and accessible for everyone. Bitget has some unique features that set it apart, like its copy trading option. This lets you automatically mimic the trades of experienced traders in real time, giving you a potential edge in the market.
The platform offers a variety of ways to earn, further enhancing its appeal. Within the Bitget ecosystem, BGB tokens can be used to get discounted trading fees, as collateral in contract trading, for staking, and more. Another thing to consider is that BGB is built on the reliable Ethereum blockchain, and it’s an improved version of an older token, showing that the company is committed to growth and innovation.
- BGB token provides trading fee discounts Bitget users
- Can be used for multiple services on the exchange
- BGB staking can be a passive income stream
- Bitget is unregulated
- Majority of BGB is held by the Bitget team as opposed to outside holders
BEST is the native token for Bitpanda, a crypto platform, and it operates on the trustworthy Ethereum network. BEST incorporates a notable “burn” feature, which gradually reduces the number of BEST tokens available, making them more valuable over time.
You can earn BEST tokens as rewards in various ways, such as by acing a Bitpanda Academy quiz or based on your trading activity from the previous month. Simply put, the more you trade and hold BEST, the more rewards you can collect. Over the past few years, BEST has gained substantial value as Bitpanda has grown, providing early investors with a handsome return on their investment.
- Bitpanda is a European regulated crypto & securities broker platform
- Weekly rewards
- Instant trade bonus
- Increased staking rewards for holding BEST token
- Bitpanda is not available in the U.S.
Imagine GateToken (GT) as your all-access VIP pass to the crypto club, Gate.io. Those who hold onto this golden ticket are privy to exclusive deals left and right.
First off, you’re not paying the same cover charge as everyone else — your trading fees get slashed. You’re in the VIP lounge while others are still in the queue, getting first dibs on new tokens that are about to hit the market. Plus, you get to dip your toes into the DeFi pool, raking in extra goodies like staking rewards.
And the club owners are literally buying back these VIP passes and setting them on fire (not literally, of course, it’s called “token burning”). Why? To make sure the passes that are left become more valuable. They’re committed to keeping this club exclusive, so your GT is likely to get more precious over time.
- GT token offers trading discounts
- Offers early access on new tokens listed on the exchange
- Use GT for staking, liquidity pools, and yield farming to earn rewards.
- Gate.io is committed to buying back and burning GT, adding to its scarcity and potential value.
- Not mineable
- GT token might be overwhelming for crypto beginners.
- Tied to one exchange
What influences centralized exchange token prices?
The price of tokens tied to centralized exchanges like BNB, KCS, or GT can be influenced by a few key factors. Here are the most important ones:
- Exchange popularity: If the exchange is doing well and has lots of users, its token will likely be in higher demand, pushing up the price.
- Trading volume: The more people trade on the exchange, the more they’ll need the token for trading fee discounts. Higher demand can mean a higher token price.
- Special benefits: Some tokens offer perks like lower trading fees, rewards, or early access to new features. The more useful the benefits, the more people might want the token.
- Scarcity: Some exchanges buy back their tokens to reduce the supply, making them more rare and potentially more valuable.
- Market sentiment: If people think the token and the exchange will do well in the future, they’re more likely to buy, which can drive up the price.
- Regulatory news: If a government decides to regulate or ban an exchange, this can negatively affect its token price.
- Overall crypto market: If the entire crypto market is going up or down, this can also affect the price of exchange-specific tokens.
- Competition: If there are other exchanges offering better services or lower fees, this could make the token less appealing and lower its price.
- Technological updates: Any new features or improvements to the exchange can also influence how people view its token.
- Investor behavior: Sometimes, people buy or sell tokens based on trends or news, which can also affect the price, even if nothing fundamental has changed about the token or exchange.
How can I buy centralized exchange tokens?
Buying centralized exchange tokens is like buying a backstage pass to your favorite concert. These special tokens give you perks, like cheaper tickets to the show (aka lower trading fees) and early access to new tokens.
Here’s the step-by-step guide to get your centralized exchange tokens:
Step 1. Pick your exchange
Choose the exchange where the token is available. It could be Binance, KuCoin, Coinbase, or another other big name. Think of this as choosing which concert to attend.
Step 2. Sign up on the exchange
You’ll need an email and a strong password. You may need to complete the KYC process, which requires you to provide an ID for extra security.
Step 3. Find your token
Once you’re in, navigate to the section where you can buy the exchange’s own token. It’s usually easy to spot, like a VIP area. Since it will be the exchange’s own token, it will most likely be promoted front and center just as you sign up.
Step 4. Fund your wallet
Just like you’d load up your wallet before hitting the merch stand, you’ll need to deposit some money into your exchange account. This could be in the form of other cryptocurrencies or even your country’s currency.
The menu should have an option like “Buy crypto.”
Step 5. Make the purchase
Click buy, decide how many tokens you want, and you’re a VIP! You now have special privileges and can enjoy all the perks that come with holding that token.
Step 6. Store safely
Think of this step as safely tucking your backstage pass into a secure pocket. Transfer your tokens to a personal wallet for safekeeping if you’re not planning on using them right away. And voila! You’re now a privileged member of the exchange’s inner circle. Enjoy the perks!
What is a centralized vs. decentralized token?
Think of tokens as your favorite game’s currency. Some games are like a big, organized theme park where one company runs everything. Others are like a sprawling, wild playground where everyone adds their own slides and swings.
In the theme park, the tokens you use to buy items are “centralized tokens.” There’s one company pulling the strings. It controls the prices, what you can buy, and even the game’s rules. It’s well-organized and easy to use, but you’ve got to play by the company’s rules.
On the other hand, in the wild playground, the tokens you use are “decentralized tokens.” No one’s in charge here. Everyone who plays contributes to how the game evolves. It might be a bit messy and confusing at times, but you have more freedom. These are also known as DeFi tokens and can be found on decentralized exchanges and sometimes on centralized exchanges too.
So, in short:
- Centralized tokens are controlled by one entity, like a company. They’re easy to use but come with set rules and limitations.
- Decentralized tokens are community-run. They offer more freedom and are not controlled by a single group.
Both have their pros and cons; it’s all about what kind of game you want to play!
Ready to invest in centralized exchange tokens?
The world of centralized exchange tokens is bustling with options, each offering its own set of benefits and use cases. Whether it’s Binance Coin (BNB), MECX token (MX), or any of the other top centralized exchange cryptocurrencies, these tokens offer more than just a trading advantage. From reduced fees to governance and exclusive perks, CEX tokens in 2023 are carving out their own vital space in the crypto landscape.
Utility tokens on exchanges like KuCoin Token (KCS) and Gate.IO token (GT) offer unique incentives to hold and use them within their respective platforms. Meanwhile, newcomers like OKB (OKEx Token) and INX Token (INX) are fast becoming leading exchange coins to watch out for. So, as you navigate through the bustling market, keep an eye on these centralized exchange tokens and their diverse use cases. They’re not just extras; they’re becoming central characters in the crypto story and undoubtedly have a place in the decentralized future.
Frequently asked questions
What is a centralized exchange token?
What is an example of a centralized exchange?
What cryptos are centralized?
Is Ethereum centralized or decentralized?
Top crypto platforms in the US | December 2023
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