This article talks about crypto trading and its growth and details the partnership between Paypal and Paxos. Further, listing a few latest announcements in crypto space. Excited? So let’s get excited.
Table of Contents
- What is Cryptocurrency Trading?
- Why Crypto Experiencing Steady Growth?
- Paypal Plans to Introduce Crypto Trading
- Other Latest Announcements in Crypto Space
- Concluding Lines
What is Cryptocurrency Trading?
Cryptocurrencies are one of the most groundbreaking inventions that have come out of the world in the last 100 years, and that means there are many implications that have to be considered when trading cryptocurrencies. Cryptocurrency markets are decentralized, which means they are not governed by a central authority such as a bank. In most simple words, crypto trading is all about “exchange of cryptocurrencies,” where a cryptocurrency trader’s major goal is to make successful trades consistently, leading to wealth creation over time. He is capable of making optimal trading decisions in the bustling crypto market and understands the fundamentals of the technological infrastructure that powers blockchains behind the scenes.
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Why Crypto Experiencing Steady Growth?
In recent years, cryptocurrencies are providing entirely unique ways to enable money transfer over the internet in recent years. Let’s check out the reasons why the concept of cryptocurrencies is gaining exponential growth. There are many advantages to using cryptocurrencies compared to traditional currencies such as:
Crypto (digital value) can act as a hedge against the traditional markets, in case, when trust in the stock market decreases, cryptocurrencies can grant a safe haven for the stored value.
With cryptocurrency, cryptocurrency traders have complete control of their funds. With the asymmetric cryptography involved in digital currencies, the private key owner is the only person who can perform transfers.
Moreover, the supply of almost all cryptocurrencies are fixed and cannot be infected by any centralized authority in a hidden manner.
Latest: Paypal Plans to Introduce Crypto Trading
Paxos Crypto Brokerage has already succeeded in securing the business of challenger bank Revolut’s US branch. In favor of collaboration, Paxos CEO Charles Cascarilla stated that the brokerage service could prove “a major tipping point for the adoption of cryptocurrency.”
Previously in March 2020, PayPal hinted its interest in cryptocurrency where the tech giant responded to the European Commission’s public consultation stating that it is keeping an eye and monitoring the evolution of the crypto-asset space, adding: “PayPal has taken unilateral and tangible steps to further develop its capabilities in this area.”
In October 2019, PayPal officially left the Libra Association, the governing body of Facebook’s Libra digital currency, as it believed that Libra’s pre-work was not enough for the tech giant.
The above statements signify that Paypal has always been involved with crypto assets. Now let’s talk about its latest partnership with Paxos.
Paxos is a New York-regulated financial institution that aims to create a global, frictionless economy. It aims to create a future where all assets are digitized and can move instantaneously.
PayPal, a digital payment giant, is all set to employ cryptocurrency services on its platform in partnership with Paxos. The entrance of the tech giant into the digital currencies space would signify a significant development for the cryptocurrency industry. The Paxos brokerage allows firms to integrate crypto trading functionalities. It allows businesses to promote the buying and selling of cryptocurrencies through API (application programming interface) integration and manages regulatory compliance. The collaboration of tech giant Paypal with stable coin operator, Paxos aims to offer crypto services to a vast Paypal user base and attempt to ensure that PayPal becomes a mainstream enterprise offering crypto purchases.
However, there is no clarity on the crypto assets that will be supported by PayPal until now.
Other Latest Announcements in Crypto Space
On July 22, the Office of the Comptroller of the Currency granted permission to allow federally chartered U.S. banks to provide clients with crypto custody services. With this permission, crypto traders will hold their digital assets in the same bank where they keep their checking, savings, and brokerage accounts. The recent survey also revealed that 65% of eMusic customers would use digital assets as cryptocurrency to allow music artists to receive higher revenue. Another announcement was spotted on July 21, that Bitcoin and Ethereum, the two most known cryptocurrencies will settle a combined $1.3 trillion in transactions in 2020. The report also figured that BTC and Eth had settled a combined $1 trillion annually in each of the past three years.
The advent of cryptocurrencies has taken the world by storm. It is a digital asset that is virtual, which has no intrinsic value created over a secure decentralized database and stores information immutably over a P2P network.” As more and more tech giant companies are bringing the concept of cryptocurrencies into their practices, the day is not far when digital assets will be more common among users.
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