Reflection is a crypto trading platform for stock tokens. Anyone looking to invest in traditional stocks through crypto-tokens can join the Reflection trading platforms for amazing benefits and offers. On this platform, you can purchase, trade, and redeem stock tokens.
Here’s everything you need to know about Reflection Stock Tokens.
What is a Reflection Stock Token?
A stock token that can be purchased or traded on the Reflection Trading platform is a Reflection Stock Token.
A crypto token that represents a share of a publicly listed company is called a stock token. The stock or shares of a publicly listed company are generally traded in a stock market. A stock token market is a platform where you can buy and sell stock tokens. Reflection is a stock token market or trading platform.
How it works?
Reflection allows users to buy crypto tokens for many listed companies on a number of top stock markets around the world. Each stock token represents a real share of the listed company. You can buy stock tokens for almost all listed companies such as Apple, Google, Meta, and others.
Every time you buy a stock token on Reflection, the platform will buy an actual share of that company from the stock market and hold that share in its brokerage account until you decide to sell the stock token, at which time Reflection will first sell its share in the stock market and use the proceeds to buy the stock token back from you.
At all times, the price of a stock token on Reflection will match the price of the associated stock (on the stock market). The value of your purchased stock token will change (rise or fall) as the value of the actual stock goes up or down. At any time you can choose to sell your stock token at its current market price.
How to buy or redeem stock tokens on Reflection?
Stock tokens on Reflection can be purchased and redeemed for stablecoins, which are crypto coins whose value is represented by real assets such as dollars, gold, etc.
When looking to purchase a stock token on Reflection, you must have BUSD (Binance USD) in your linked MetaMask wallet.
For the convenience and security of its platform users, Reflection has created its own native stablecoin called Reflection Stablecoin or RUSD.
You can purchase stock tokens only with Binance stablecoin (BUSD) as of now. BUSD can be bought on any crypto exchange using cash or crypto. (Reflection doesn’t yet allow users to purchase RUSD directly.)
Once you have BUSD in your wallet, you can use it to buy any stock token listed on Reflection and it will appear in your linked MetaMask wallet.
When you sell or redeem your stock tokens on Reflection, you’ll receive RUSD in your wallet, which you can convert into other stablecoins (for free) or use to buy more stock tokens.
Holding a stock token isn’t exactly the same as holding shares of an actual stock, as a stock token does not give you ownership rights to the underlying stock. Also, you do not get any voting rights. However, there are many benefits of investing in stock tokens on Reflection.
For example, you can send stock tokens to others, buy a fraction of shares, buy stocks with more privacy (without sharing all your personal details with an exchange), and invest in stocks without a bank account and from anywhere in the world.