Hi guys, I have been doing some research lately and one of them involves cryptocurrency exchange platforms. The reason I decided to research on this area is simply because of the vast adoption of cryptocurrency and blockchain, weather you like it or not, the tech has come to stay and will gradually replace most if not all the normal internet 2.0 tech that are available now.
So with that said, I decided to look into Binance, Bittrex and Coinbase to see what really makes them different. While I am going to highlight some important futures of coinbase, I am going to group Bittrex and Binance as one, seeing that they both function in the same way and coincidentally they both start with the letter “B”. This is because while Coinbase is a platform majorly used for Fiat to Cryptocurrency exchange e.g (Dollar to BTC), Bittrex & Binance on the other hand is for Cryptocurrency (Alt to BTC/ETH etc) exchange.
Binance
This is the largest cryptocurrency exchange platform with millions of users worldwide. Although it is a new exchange platform which began live trading on July 2017, it has proven to be reliable, secure and consistent in term of downtime thereby increasing volume of traders that visits on daily basis. Also new crypto currencies which just hit the market are making their way to this exchange. another big reasons behind the popularity of Binance exchange is its significantly low trading fees and increasing numbers of tradable coins/tokens. While trading on Binance, you will be charged 0.1% fee on each trade.
Coinbase
Coinbase is a US base popular and user-friendly platform for trading just selected/approved coins/token for fiat such as the USD or EUR. In coinbase as at the time of this writing you can only exchange buy/sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Coinbase which was founded in 2012 with over 10M users has proven to be the most secure and reliable crypto trading platform, however its inability to trade more cryptocurrency other than the mentioned four above, makes it very limited. Also, the fact that it is limited to selected regions/country is another drawback that makes people not see it as the number go to for cryptocurrency exchange.
Why Do People Still Use Coinbase?
Well at this time, coinbase usage cannot be neglected since we are still dealing with fiat in our various country as a major legal tender and they seem to be one of the provider of fiat to digital assets. However, with time, trend might shift reasons being that coinbase has limited reach. So it means if I am not in the US, UK or any of the country where their services are being provided, I cannot make use of them for trading. Also, they have just four digital assets that can be purchased, which leaves you as a trader with very thin choices to make when trading or investing.
What Happens Next?
Recently, Binance announced that they are making plans to add fiat to crypto trading pair. And already most people have seen this a very welcome development in the cryptocurrency market where it is often not easy to purchase alts using fiat currencies. Similarly, this provide cryptocurrency traders and investors the opportunity to exchange their alts to fiat with ease irrespective of where they are. As a result of this announcement, investors and traders have already expressed their delight on receiving the news.
Boundless_moons (investor) said ‘Very excited for this, won’t have to worry about USDT anymore!”.
Another investor wrote, “Big news. Coinbase are losing their market dominance. Bittrex has also mentioned it will be offering fiat deposits soon as well.”
Already you can see the reaction from people’s comments, another great news from Binance came from the CEO, Mr Zhao who recently said that they have established an office in Malta.
This opens lots of advantages for Binance, for example, the earlier mentioned fiat-to-crypto trading pair, investors and traders will now be free to purchase digital assets using USD or even the Euro directly. Prior to this, you had to buy Bitcoin from fiat to bitcoin in another cryptocurrency exchanges like coinbase then transfer to Binance before purchasing altcoins, with this move, there will be no need for that, you can simply and easily login to your binance platform and purchase any alts or btc using your USD or EUR
Binance CEO, Mr Zhao also mentioned that they are working on securing a deal with local Banks in Malta that will make the process of depositing and withdrawing fiat currencies seamless and accessible.
In nutshell, it will be easy to say they if Binance and Bittrex is able to achieve this move, then trading of Fiat to alts will be very swift and alts like XRP and XVG which have adopted new use cases may just be seeing a new ATH.
Do you think this is great for the crypto community or not? Let us get your view about this in the comment section, thanks.
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