Stock funds were yesterday, today experts and lay people alike can buy crypto. But while fans of digital commodities celebrate the high profit margins, many investors tend to see the risks – which are obvious due to sharp price fluctuations. Dr Wolfgang Richter, partner and lawyer at the law firm gunnercooke, explains how interested parties can proceed.
“There are now thousands of so-called tokens, i.e. the crypto units that
Blockchain-based can be traded,” explains Wolfgang Richter first.
Payment tokens such as Bitcoin or Ether are in the public eye. This
is characterized by the fact that they have no rights or claims against third parties
is connected. In fact, investors are moving to payment brands in
area of currency speculation. They might as well be yen or Swiss
Get francs, hope for price increases and this again with a profit
to sell. A realistic assessment of the payment method
however, requires quite a bit of research and is by no means reliable
Bank. Wolfgang Richter: “Crypto including payment tokens will be in
experience a very strong spread in the next few years. Also in the future
high profits with payment brands are possible, but also big losses.
Therefore, every investor should bear this in mind when making decisions.”
Spoiled for choice
Security tokens represent the second category. These can be compared to
Securities, such as shares, debentures or unit certificates.
Therefore, unlike payment tokens, there is more to security tokens
Ability to determine probability of return through research. “On
reputable security tokens provide issuers with sufficient information,
so you can get an idea about it. So the element of speculation is here
lower than with payment stamps,” explains Wolfgang Richter. “The third category
is it of the supply brands. These promise a concrete use, e.g
as a voucher or as access to privileged information or clubs.” From
For regulatory reasons, many companies currently use utility tokens
issues to cover their financial needs. Here too, as with security tokens,
reputable issuers have the opportunity to find out more about
To inform companies and how possible uses and thus
The price development can be estimated. There are clear differences
on the other hand to the non-fungible tokens (NFT) which occur only once ie
are unique. This distinguishes them from the other token categories where
tokens are of the same type and cannot be distinguished from each other. wolf walk
Richter elaborates: “NFTs first appeared in the art market and have
quickly reached double-digit million values. But now it is like this
Certain industries consistently work on NFT’s concepts, esp
the music, sports and other events industries.”
Large token exchanges such as Binance primarily allow trading
Payment Tokens and Utility Tokens. Purchased and also considered relatively easy
Selling NFTs on exchanges like Opensea. Security tokens require a higher
regulatory lineup of the exchange, which most do not have yet. But there is
meanwhile, a number of stock exchange projects require regulatory approval
received for security token trading. The prerequisite for trading is that
Buyers have a so-called wallet: the “account” in the blockchain world.
Each wallet has a public address that can be seen by anyone.
The private address, the so-called private key, is a multi-digit number and
Combination of numbers owned only by the owner – corresponding to the four-digit PIN code on
EC card. Wolfgang Richter advises: “There are now service providers that support investors
support the management of the private keys. With safe custody of
The investment is then also protected with private keys.”