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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.

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Bitcoin Feeding Frenzy Sees People Put Their House on It

The recent skyrocketing Bitcoin price has brought about a fresh wave of interest and adoption. People are hearing about the fantastical gains that can be made from investing in Bitcoin, leading some of them to make brash decisions.

There have been some cases of individuals even putting their houses up for mortgage in order to acquire capital to buy into Bitcoin. It speaks of the frenzy that has developed recently.

The frenzy of people getting into the market should be viewed with caution however as the old adage is still: ‘Don’t put more into Bitcoin than you are willing to lose’.

Worrying trend

There have been instances of not only mortgages being taken out to buy Bitcoin, but also people using credit to buy the potentially explosive and volatile asset.

Joseph Borg, president of the North American Securities Administrators Association, a voluntary organization devoted to investor protection, and director of the Alabama Securities Commission, has seen some worrying trends developing in Bitcoin investors.

“We’ve seen mortgages being taken out to buy Bitcoin. … People do credit cards, equity lines. This is not something that a guy who’s making $100,000 a year, who’s got a mortgage and two kids in college ought to be invested in.”

Borg’s outlook could be considered a little one-eyed, stating that people should not be investing in Bitcoin if they have other costs, but what his point should be is that like with everything, investing should only be done with money that is disposable.

Double-edged sword

The issue is, there are many stories of Bitcoin breaking the shackles of debt and servitude to banks for its investors. However, it is senseless to use debt to try and get out of debt, especially with such a volatile asset as Bitcoin.

Investing in Bitcoin is not the issue, it is the circumstances in which one finds themselves making that investment. The use of credit cards, mortgages, or any other lines of debt is dangerous as the future is still uncertain with the digital currency.