Binance Enables Credit and Debit Card Purchases for Crypto

Binance, the world’s largest crypto to crypto exchange has recently announced its partnership with Simplex (a payment processing company) to allow Binance users to purchase cryptocurrency using credit cards. This step forward helps bridge the gap for users who wanted a more direct method to purchase bitcoin and other cryptocurrencies on Binance.

If you already have a Binance account you can check out the service at https://www.binance.com/en/creditcard/, or you can easily register for a Binance account to start trading a variety of cryptocurrencies with ease.

Building On Binance’s Onboarding Infrastructure

While Binance is one of the more user-friendly cryptocurrency exchanges, having to purchase bitcoin or cryptocurrencies elsewhere before transferring them to Binance wallets to begin trading was a bit too daunting of a challenge for many users new to crypto. Now, Binance has cut out the extra step for users looking to quickly purchase and trade cryptocurrencies all on the same platform. This improvement is a solid step forward and strengthens Binance’s position as the leading cryptocurrency exchange by volume traded.

To start, Binance will be allowing users to purchase bitcoin, ethereum, litecoin and XRP with credit or debit cards, with no word on whether they will be opening up other cryptocurrencies in the future.

BNB in Uptrend Despite Continuing Bear Market

Although bitcoin and the rest of the crypto markets have been taking quite a beating in this bear market, BNB (Binance Coin) has been in a steady uptrend since late November. Both the dollar and bitcoin pairing have been progressing upwards on the weekly charts (shown below), with the first significant pullback against bitcoin having come this latest week. This being said, if the rally continues it looks like BNB could eventually challenge its previous highs in the future, something that most other cryptocurrencies are very far from doing.

Binance Partners with Simplex for Payment Processing

To make this possible, Binance has partnered with online payment-processing provider Simplex. This isn’t Simplex’s first foray into the crypto space, since the company is already partners with BitMart and Mycelium, and partnered with KuCoin in late November of 2018. Simplex looks to be providing a much needed service for various cryptocurrency exchanges out there, ensuring that users can easily purchase cryptocurrency on their favourite exchanges using their credit or debit cards.

While Binance has notified that not all countries and US states will be able to take advantage of the feature, this is a limitation from Simplex’s side of things.

Binance CEO Changpeng “CZ” Zhao Focusing on Speed, Security and Adoption

Talking about this partnership, it’s clear the Binance CEO Changpeng Zhao is continuously looking to push cryptocurrency adoption while improving the current systems and gateways. This partnership with Simplex helps improve both the onramp for new crypto users along with the infrastructure for existing Binance traders.

On the Binance blog’s announcement post the Binance CEO talked about how the necessity of building fiat gateways for the crypto industry’s growth: “The crypto industry is still in its early stages and most of the world’s money is still in fiat. Building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users.”

You can follow Changpeng “CZ” Zhao on Twitter @cz_binance, and to stay up to date with the latest bitcoin and cryptocurrency news be sure to follow @NewsCoinToday.

Understanding the Basics of Blockchain Systems

shutterstock_722242618Before delving into Bitcoin and cryptocurrency, it’s important to have an underlying foundation of knowledge of blockchain systems. Below is a comprehensive post which underlies the basics of blockchain systems and the varying technologies that can power them.

Blockchain systems are a coalescence of three main principles: private key cryptography, a distributed network with a shared ledger, and an anchoring reason or goal to support secure and recorded network transactions. These three form the basis of blockchain technology, generally defining it as a secure and decentralized ledger that cannot be tampered or altered. Most importantly, a blockchain network eliminates the need for a trusted third-party, as it is able to create a trustless system.

A Trustless System?

A trustless system doesn’t define a system that is untrustworthy but rather is used to connotate a system that isn’t reliant and overtrusting of any single party or distributor of information. This is because blockchain systems distribute trust rather than collectively dumping it upon a trusted third-party, like many centralized services work today. In blockchain technology, trust is placed on the governing protocol of the blockchain, whether it be proof-of-work, proof-of-stake, or another kind of consensus mechanism which approves transactions and additions to the blockchain.

This being said, there is no exact definition of what a blockchain is. While many choose to define blockchain a “decentralized ledger of transactions”, there are many blockchains which are not associated to a cryptocurrency (like Walmart’s supply chain database and recent patent for a blockchain-based health care records system), others which are not recorded publicly (like MasterCard’s blockchain APIs) and are not decentralised.

Defining Blockchain Systems

The Verge has an in-depth article which explores the history and definition of blockchain technology, wherein University of British Columbia associate professor of archival science Victoria Lemiuex states:

“In general, if the transactions are gathered together in blocks, and it is blocks that are secured on the chain using cryptography, and it is designed to be tamper-resistant and produce immutable records, the system qualifies as a blockchain,”

Associate professor Lemieux further explains that even if the above can be seen as a definition for blockchain systems, there are many distributed ledgers that denote themselves as blockchains even when their transactions aren’t organized in blocks. This is why it’s best to think about blockchain in terms of the technology being used, rather than absolute adjectives like trustless or immutable, which might not be applicable in all cases.

How Does Blockchain Technology Work?

A Blockchain system is a cryptographically secured chain of blocks, each block containing a set of data. This dataset can be anything, from a history of transactions to any other kind of record keeping. Let’s break everything down briefly to make blockchain’s innate security easier to understand:

  • A block is a collection of data.
  • Each block‘s information is cryptographically encoded using a mathematical equation into a 64-character string called a hash.
  • If anything is changed in a block‘s data or contents, even just one letter or number, the resulting hash is also completely changed into an entirely different hash.
  • This means every block‘s hash is always unique.
  • Every block includes the previous block‘s hash as part of its data. Let’s call this a memory hash just to make the next section easier to understand.

The mathematical work required to create these cryptographically encoded hashes is called proof of work, as it validates the set of data. In the case of Bitcoin, the proof of work algorithm ensures a block of transactions are valid and legitimate before they are verified and stored on the public blockchain. Proof of work algorithms necessitate a lot of computational power, which is why blockchain systems like Bitcoin function by allowing users around the world to contribute their computational power and act as “miners”. In compensation, a reward is given to the first successful miners who have verified transactions on a completed block using the proof of work algorithm.

There’s also a different kind of blockchain protocol system called proof of stake, but we’ll be going over proof of stake and how it differs from proof of work in a future post.

Why Blockchain Systems are Difficult to Tamper

Because of the If a block’s data is changed or missing, the block’s hash will be different to the memory hash present on the next block. Because a block’s data contents also include the memory hash, and is a factor in that block’s hash, if one tried to cover up their data tampering by changing the memory hash on the next block to match the altered block’s hash, then they would have to continue the process, effectively changing every single block in the blockchain.

It is this structure, using cryptographically obtained hashes to define and secure each block, which makes blockchain difficult to tamper with. However, the decentralised nature of many blockchains also plays a large part in making these chains of information secure and unchangeable.

The Security of Blockchain Systems

In the case of a decentralized blockchain system, data is processed through the proof of work or proof of stake protocol by a network of users acting as a consensus mechanism before all updating the blockchain at the same time. Every participant in the blockchain is continuously contributing some of their computing power into maintaining and updating new data entered into the blockchain.

All nodes (contributing computers or servers) are connected and communicating about the validity of each transaction or information being added into the blockchain. Once all the nodes come to the same conclusion about the data contents within a block, they all approve and add it to the blockchain at the same time. This results in a shared and distributed ledger of transactions (in the case of a cryptocurrency blockchain like Bitcoin) that cannot be altered or tampered.

ETH and Altcoins Follow Bitcoin Bloodbath

After a significant 8% drop in Bitcoin’s USD price the past few days, the cryptocurrency market has continued to bleed significantly with Ethereum and many other altcoins following the negative trend. Ethereum suffered a 12% drop in the past few days (currently at $410 at the time of writing), moving down from the comfortable levels of support it had established around $450. ETH’s low wicked down to $395, with the next major support seemingly sitting at the $365 mark.

While Bitcoin’s price has continued shaking out in the $7,200-7,600 range, many altcoins have suffered large drops similar to ETH, past their expected levels of long-term support.

Below is the 4h ETH/USD chart, with the 12% drop highlighted:

Screen Shot 2018-08-03 at 11.26.47 AM

This drop in Ethereum’s price has seen serious bleeding across a variety of other coins, with some of the biggest losers over the past 24 hours being Waltonchain (-16.60%), ICON (-15.54%), Wanchain (-14.68%) and Vechain (-13.20%). Other coins which also dropped by more than 10% today are PundiX, PolyMath, Dent, Golem, and Mithril.

Larger coins like Bitcoin Cash (-5.29%), Ethereum Classic (-4.09%), OmiseGO (-6.46%), NEO (-4.04%), Stellar (-6.83%) and 0x (-6.13%) have also been suffering over the past 24 hours.

While some coins like EOS, Tezos, and Komodo especially have recovered and are doing positively on the 24h timescale, many other coins continue to reach for new bottoms. Today’s hit of drops only underscores the relative negative downtrend over the past couple of weeks for Ethereum and various other altcoins.

Ethereum looks like it will be hugging the $410 support line, with it possibly turning to resistance very soon. Despite Ethereum’s recent drop following Bitcoin’s, ETH/BTC has risen steadily over the past 10 hours (+3% on the high wick over the past 10 hours), offering the possibility of some breathing room for Ethereum and other altcoins, while Bitcoin possibly suffers its next drop.

Below is the 1h chart of ETH/BTC:

Screen Shot 2018-08-03 at 2.44.20 PM

Bitcoin has also moved slightly below the previously anticipated $7,500 support, and is priced $7,380 at the time of writing. If the $7,200 level breaks for Bitcoin, it looks like $7,000 is the only possible point of support before dropping back down to the $6,800 price.

News Coin Today is not a source of financial advice. Charts are from TradingView

Bitcoin Drops Down to $7.5K Support

The USD price of Bitcoin dropped around 8-9% over the past two days, moving down from its previously settled support of $8,100 to reach lows of $7,460 before arriving at $7,538 at the time of writing.

While there is some support around the $7,200 range, Bitcoin’s price could swiftly drop to $6,800 or $6,600 if this is the beginning of a new downtrend.

Below is the 4h BTC/USD chart with the drop highlighted by the box:

Screen Shot 2018-08-01 at 5.34.51 PM

The mentioned supports of 7,200, 6,600 and 6,800 are shown below, also 4h BTC/USD:

Screen Shot 2018-08-01 at 6.01.45 PM

Screen Shot 2018-08-01 at 6.21.55 PM

It seems like the bull run which began from the low $5,800 range has tapered off and is now trading in the $7,750-7,550 range for the past 24h at the time of writing. We’ll have to wait to see whether the ~$7,500 support can provide a bounce back to test $7,700 and eventually $8,000 resistance levels again in the next couple of days.

Bitcoin’s current percentage of the total cryptocurrency market capitalization is currently 47.90% at the time of writing according to CoinMarketCap.

News Coin Today is not a source of financial advice.

News Coin Today Launches

shutterstock_595078307News Coin Today launches today!

– 11:09 GMT July 28th, 2018.

News Coin Today will provide weekly coin, altcoin reports, and whitepaper breakdowns, along with blockchain and cryptocurrency news.

We will generally cover Bitcoin, Ethereum, Ethereum Classic, Bitcoin Cash, Litecoin, Ripple, NEO, EOS, along with many other coins as we look to provide a comprehensive news report of the cryptocurrency and blockchain industries.