Binance Addition Of USD/EUR Trading Pairs Means More Action For Crypto (BTC, ETH, XRP, LTC)
Binance is ranked number one in terms of the crypto exchange with the highest trade volume per day. At the moment of writing this, Binance is doing a whopping $2.11 Billion in daily trading. The main cryptocurrencies trading on the online exchange are Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Ripple (XRP) and Zilliqa (ZIL) in that order.
Bitcoin leads the pack with $330.47 Million in trade volume and when paired with USDT; Ethereum is second with $90.6 Miillion when paired with USDT and $88.55 Million when paired with Bitcoin. Tron, Ripple and Zilliqa have trade volumes of $88.3 Million, $84.362 Million and $59.16 Million respectively and all paired with BTC.
With the above information and the trading pairing mentioned, it is easy to conclude that the news about Binance adding fiat as an option when selecting trading pairs, will bring much anticipated action to the most popular crypto exchange. This is because USDT (Tether), which is pegged to the US Dollar, is only paired with Cardano (ADA), Bitcoin Cash (BCC), Binance Coin (BNB), BTC, ETH, LTC, NEO and QTUM. This means that if you are trading any other coin or token and the market starts to tank, you will have to trade to BTC then to USDT very quick to avoid losses.
With Binance currently trading 304 coins and tokens, this means a trader has to always rely on BTC, BNB or ETH to be a ‘middle-man’ coin, for you to stash your profits in USDT. In using these coins as a ‘middle-men’, you lose valuable time and incur an additional transaction fee just to get to USDT.
With personal experience, and the recent crash in December after Christmas, I found that I was able to avoid losses with Bitfinex which has USD paired with all the coins and tokens on the exchange. When the crypto market dipped, the USD was not affected and I could hold my loot safely in fiat as the crypto did all the ‘tumbling’ in the markets. To add to this, I only needed on transaction to be safely back to USD.
It is with this premise that when Binance adds the fiat-to-crypto option on their exchange, that it is safe to conclude that this move will even attract more traders from other exchanges. Binance has also announced that it is shifting base to Malta in a bid to avoid crytocurrency crackdowns in China and tough regulations in America. The CEO of Binance, Zao Changpeng, is quoted as saying the following about Malta:
“We are very confident we can announce a banking partnership there soon. Malta is very progressive when it comes to crypto and fintech.”
In conclusion, the Crypto-verse is still gaining momentum in a manner that had been predicted earlier this year, but there were lingering doubts due to the falling crypto values. Since April 12th, there was been a resurgence in the markets. What remains is the increase in mainstream adoption of the industry.