Fiat Currencies and the Crypto Exchange

By |June 15th, 2019

While currencies of old were backed by a gold or silver standard, most modern paper money uses a fiat system in which the currency’s value is based on supply, demand, and the stability of the government that issues it. When people talk about traditional currencies such as the Euro or the US dollar, they are discussing fiat money. Fiat is important for cryptocurrency users because it helps gauge the demand of a given currency. For crypto exchanges accepting fiat, the money used to by a cryptocurrency tells you at what level people value it.

Current Top Exchanges

As of spring 2019, the current top cryptocurrency exchanges include the following:

  • Coinbase
  • Binance
  • BitMex
  • OKEx
  • Kraken
  • Huobi
  • Bitfinex
  • Bittrex
  • Bitstamp
  • KuCoin

Of these exchanges, all but two (Binance and KuCoin) offer the ability to convert fiat currency. The fact that there are so many crypto exchanges that accept fiat is a strong sign as to the importance to fiat to the crypto exchange. Because many people question the stability of cryptocurrency, the fact that there is a consistent and clear crypto fiat exchange provides a tangible look at the supple and demand of these currencies.

Importance of Crypto Fiat Exchange

Because fiat currency serves such an important role in helping to set a consistent value for cryptocurrencies, crypto buyers are always looking for the best crypto fiat exchange. Online sources such as fiat to crypto exchange Reddit discussions help to identify exchange sites that are secure, fair, and offer low trading fees. The current best fiat to crypto exchange options include Kraken, Bitstamp, and Coinbase. All of these offer multiple secure payment methods, reasonable prices of coins, and low fees. Security is particularly tantamount in any sort of crypto exchange fiat withdrawal platform, as investors and clients always need to know that their money is safe no matter what form it happens to take.

Connecting Currencies

As they become more mainstream, cryptocurrencies need to have ways to connect to local currencies in different countries. Many of the best crypto fiat exchange platforms already do this, and those that thrive in the future will undoubtedly take advantage of the trend by providing more options and fewer restrictions for a typical crypto exchange fiat deposit or withdrawal. To connect more local currencies, cryptocurrency exchanges should strive agree on opening payment accounts in payment systems and banks, integrate many different payment options, and provide either bank transfer or API gateways with a financial partner. People love choices, and a cryptocurrency exchange needs to provide them with those choices. Even if cryptocurrencies have advantages over fiat currency, the ability to exchange between the two can help crypto platforms thrive.

Most modern cryptocurrency platforms offer fiat crypto exchange options, and any new platform entering the industry should provide such choices. Software such as Merkeleon is a great starting point, as it offers a turnkey solution that allows you to add any fiat currency and exchange pairs. By utilizing this software, you can create a thriving cryptocurrency exchange from scratch.

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