It’s possible to trade cryptocurrencies on IQ Option for quite a while now. However, since recently they added the so called Hodly Wallet App and this app is widely advertised on Facebook and Twitter. As a lot of people asked me questions about these OTN Tokens on IQ Option I want to explain how these work in this short post.
Whoever is familiar with Binance would immediately understand but I will explain the inner workings of the OTN Tokens using a comparison. The OTN Tokens of IQ Option’s Cryptocurrency Trading App and Trading Platform are similar to Binance Coins on Binance (BNC).
Whoever owns Binance Coins on Binance has, apart from the Binance Coins that he/she can sell to take profit/loss in satoshi, right on 50% discount on transaction fees. Every time you open a position on Binance you will burn a fraction or several Binance Coins, based on the size of the transaction.
So, simply put, if you trade a lot on Binance, it’s recommended to buy some Binance Coins and HODL these. This way you save on transaction fees and store value in the form of Binance Coins.
OTN Tokens on IQ Option function exactly the same, I actually think that IQ Option copied the whole idea of OTN Token from Binance’s Binance Coin. At IQ Option you can just not only buy the OTN tokens but also earn them in a sort of loyalty program. For example: you earn OTN Tokens by finishing in the top traders in a trading competition or by referring friends to the IQ Option trading platform.
Every Sunday night you get extra OTN Tokens deposited on your account. These tokens you can send to any wallet that accepts ERC20 tokens and transactions, keep on IQ Option to get discount on transaction fees or sell them immediately.
How many $ in OTN Tokens you get per trade is calculated as following:
If you open a trade it displays how many tokens you get and how much transaction fee you pay. Then every Sunday IQ Option adds up all transaction fees paid by all IQ Option’s traders and how many tokens they received all together. The total amount paid in transaction fees is divided by the amount of issued tokens and like this the value in USD per token is calculated every Sunday night.
Now IQ Option also offers a wallet with it’s HODLY app it’s really worthwhile to check out IQ Option. I say this because at IQ Option, you can open a real money account from just a $10 or higher deposit and not several hundred Dollar’s like other brokers and platforms.
Personally I advise every crypto trader to have as many channels from fiat to crypto and vice versa. Having a verified IQ Option account always comes in handy, as you can always swap from ten bucks or buy extra crypto with fiat on the go.
On Vimeo I found the following video on the inner workings of the OTN Tokens: