Why is FIAT Funding Essential for the Crypto Exchanges?
Choosing a reliable crypto exchange that will satisfy your needs and enable the required features to ensure your satisfaction, is becoming more and more complicated nowadays. Once you have entered the market, understanding your needs and finding an exchange with proper solutions becomes crucial; this includes regulations, advanced security, variety of trading pairs etc. Still, those requirements are based on your experience, as you have tried some exchanges, identified what you need and you are now in your search of the most beneficial option.
However, what about the newcomers? Demand creates its own supply and not vice versa. This is vital for any industry to have the number of contributors growing because this is the only way to satisfy its need for new investments. One of the main features that can attract new clients to enter the Crypto market is the possibility to deposit with FIAT money and convert them into crypto assets.
Fiat vs Crypto
Fiat money is a traditional currency people use in their everyday lives. They are easily affected by the global economic situation and political events because of the governmental regulations and banks backing.
Price stability and deep liquidity make fiat currencies more reliable while at the same time cryptocurrencies are considered more risky and profitable. The Crypto market is more volatile, creating more potential for possible earnings. However, fiat money is more predictable in frames of the possibility to track global news and create your strategy based on them.
The main factor, which regulates the value of the crypto assets, is the liquidity pool created by the invested funds. In simple words, the cost of any token depends on the hype around it, on the amount of bought tokens and investors` money. For example, Bitcoin has over $92 million market capitalisation compared to the Ethereum with its over $17 million. In addition, the price of one BTC on 17.04.2019 is over $5.200, and the cost of one ETH is over $166.
New Crypto Enthusiasts
Once the world realised that the liquidity is a primary factor to make the Crypto market attractive, there were plenty of newly implemented features to return the attention to this exciting investment opportunity. At the same time, the crypto community understood this market might be confusing for the traditional traders because of the difficult entrance and hidden commissions.
Imagine that to start trading you first need to buy an intermediary cryptocurrency, such as Bitcoin or Ethereum, before you can join the action at the exchange. You would be affected by the market volatility, and the value of your token could jump and fall hundreds of times per day. With the possibility of the fiat funding and further conversion into crypto, contributors can decide on which tokens they prefer. They also can invest in one or multiple of them, having an option of keeping their existing tokens for an unlimited time. This also simplifies the process of withdrawing directly to your credit card with USD or any different currency you prefer.
The IronX Exchange decided to move further, and despite the straightforward fiat-to-crypto conversion, the exchange users have access to the IronX trading platform, which allows them to trade crypto and all varieties of traditional forex trading instruments.
One of the current promotions created with the new traders in mind is 10 free IRX, which users will get upon registration and further KYC approval at www.ironx.com.
