Binance, one of the world’s fastest growing and most popular cryptocurrency exchanges, plans to provide its users with crypto-to-fiat trading pairs. The platform, has experienced user growth of around 400% since January and a 10- fold increase in its own tradable token value in the last 6 months. It will most likely experience further jumps both in trading volume and users thanks to the launch.
But why is a crypto-fiat trading pair so important?
Currently, the only trading pairs available on Binance are crypto-crypto. These pairs include Tether (USDT) which imitates the dollar and acts as a theoretical crypto-fiat gateway for investors. In such a volatile market, sometimes the smartest action is to sell and wait out the storm in a protected environment.
Tether supplies this opportunity, but what happens when the value of Tether owned by traders exceeds Tether in reserves?
This question has been partly responsible for the market crashes experienced in the past few months. The lack of a protected and safe currency for investors to fall back on has surely damaged market liquidity and caused sceptical investors to escape with their money.
But, as an increasing number of crypto platforms embrace the need for fiat pairings, more traditional trading institutions and banks are embracing the crypto revolution. This has enabled the recent addition of crypto-USD pairing on Bittrex, another major exchange, which signed a deal with New York’s Signature Bank enabling clients to make fiat deposits.
The crypto-fiat trading pairs provide traders not only with a safe and trusted trading option, but with the knowledge that slowly but surely “crypto is turning the corner in terms of mainstream acceptance” as stated by Bittrex CEO, Bill Shihara.
Let’s hope that this is a step in the right direction for wide-scale crypto adoption and a long-awaited rally in the market.
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