Yesterday was the Halving of Bitcoin, and Binance held an event on YouTube called #BinanceHalvingParty. There, one of the guests was asked a question about the Forex and the cryptocurrencies. To the surprise of all, Binance left the door open to a possible future Forex traders. It is not a secret for anyone that out there are different evangelists of the various topics. We have the case of our well-known Herbalife, or Crossfit, the case of the cryptocurrencies (our case), and finally to a well-known makes Forex. Up to now, the world of Forex and the world of cryptocurrencies were simply two different pages of the same book. But, what happens if you are a faithful believer of the cryptocurrencies, but you are in the world of Forex, or if you discover the criptos being in the Forex? There isn’t really a place as well, or at least for now.
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Binance left the door open to traders of Forex
Today, in the event of Binance, Aaron Gong, in charge of the platform of Binance Futures was present, along with the Changpeng Zhao in the event of the Halving organized by the crypto exchange world’s largest. In such event, the panelists talked about the event of Halving of Bitcoin, on the impact that would have on the crypto mining, and finally had to answer some questions that were present in the event them would make. A question was specific for Aaron Gong, about the possibility of mixing the worlds of Forex and of the cryptocurrencies under the name of Binance. To which Aaron replied that: “If there is a strong demand for Forex trading products in Binance why not? We all know that the changes in the valuation of the coins fiduciary affect Bitcoin and the cryptocurrencies”. This response has begun to make a hole in the deepest part of traders Forex. The possibility of trading currencies, but with all the benefits offered by the criptomercado.
What is the Forex market?
Forex is the acronym of Forain Exchange Market (Foreign Exchange trading). The Forex is nothing more than the process of change one fiat currency for another. This market is known to be very liquid, and easy to access for the small traders, and even beginners. Could it be part of Binance Forex trading? According to a triennial report recent Bank for International Settlements, the average daily transactions for the year 2019 was at $5.1 billion. A unique aspect of the Forex is that there is no central market for currencies. On the contrary, trading foreign currency is done in OTC markets. Which means that all transactions occur via computer networks between traders around the world, instead of in the centralized exchange. And just like the crypto market, the market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney-in almost every time zone. As we have more things in common with the crypto market than we had thought.
But, as to unite the two worlds Forex and Crypto in Binance?
The answer we can have in the Stablecoins. These criptos are not like Bitcoin (BTC), since they are not volatile. Its value is tied 1:1 with different currencies trust in the world. There is, for example, Tether (USDT), and Binance Dollar (BUSD), both linked to the us dollar, but with technical characteristics and regulatory different. Or the case of Binance Pound (BGBP) tied 1:1 to the Pound Sterling, and like these many more examples of cryptocurrencies that are anchored to different currencies Fiat. In a nutshell, these cryptocurrencies do not vary in price, unless the currency to which they are anchored change of value with respect to another. In addition, it converts these criptos in versions for the crypto ecosystem of the outdated and inflationary currency trust. But, with them, we have already the beginning of a Forex market in Binance. The ability to exchange different currencies fiduciary, but through a Blockchain, and thanks to the cryptocurrencies.