Getting started

What's token trading?

Published on Aug 22, 2023Updated on Apr 4, 20242 min read176

Token-to-token trading refers to exchanging a digital asset with another digital asset.

Certain tokens, like Bitcoin and Litecoin, are typically priced in USD. This is called a currency pair, which means a digital asset’s value is determined by its comparison to another currency.

For example, a BTC/USD pair represents how much USD is required to buy one BTC, or how much USD will be received for selling one BTC. The same principles would apply to all trading pairs. If OKX were to offer a LTC/BTC pair, the LTC/BTC designation represents how much BTC is required to buy one LTC, or how much BTC would be received for selling one LTC.

What are the differences between token trading and cash-to-crypto trading?

While token trading refers to the exchange of a digital asset for another digital asset, cash-to-crypto trading refers to the exchange of a digital asset for cash (and vice versa). For example, with cash-to-crypto trading, if you buy BTC with USD and the BTC price increases later, you can sell it back for more USD. However, if the BTC price drops, you can sell for less.

How are prices determined in token trading?

Just like cash-to-crypto trading, the market prices of token trading are determined by supply and demand.

Disclaimer
This article/blog is provided for informational purposes only. It is not intended to provide (i) investment advice or an investment recommendation, (ii) an offer or solicitation to buy, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. Digital assets, including stablecoins and NFTs, are subject to market volatility, involve a high degree of risk, can lose value, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition and risk tolerance. Please consult your legal/ tax/ investment professional for questions about your specific circumstances. Not all products are offered in all regions including the U.S.A., U.K., Crimea, Cuba, Donetsk, Iran, Luhansk, North Korea, Syria Malta, Australia, Bangladesh, Bolivia, The Bahamas, Canada, Malaysia, Hong Kong, France (and its territories), and Singapore. For more details, please refer to the OKX Terms of Use and Risk & Compliance Disclosure. © 2024 OKX. All rights reserved.

What are the differences between token trading and cash-to-crypto trading?
How are prices determined in token trading?