Recent statistical data reveals that Binance and Coinbase, two major players in the cryptocurrency exchange market, together hold a significant 11.85% share of the $1.68 trillion digital currency economy. Moreover, these renowned trading platforms have control over 7.83% of the total bitcoin supply, underscoring their influential position in the market.
Binance and Coinbase's Market Dominance
Binance and Coinbase are globally recognized as the leading cryptocurrency exchanges, boasting high daily trading volumes and managing substantial cryptocurrency reserves. In the latest 24-hour period on Saturday, Binance took the lead with an impressive $15.87 billion in trading activity, while Coinbase, securing its position as the second-largest exchange on weekends, witnessed $2.91 billion in trades.
Onchain data sourced from Arkham Intelligence further unveils that these exchanges collectively hold cryptocurrencies valued at $199.14 billion, accounting for 11.85% of the entire crypto economy's value. Binance takes the lead with $136.47 billion, while Coinbase holds approximately $62.67 billion in crypto assets. Statistics also indicate that Coinbase possesses 978,577 BTC, whereas Binance commands 666,922 BTC.
Together, these two exchanges control 1,645,499 BTC, which is worth $70.49 billion based on current exchange rates, constituting 7.83% of BTC's capped supply of 21 million. Presently, Coinbase and Binance hold around 8.39% of the circulating 19,597,705 BTC. Both exchanges have a significant quantity of Ethereum as well, with Binance holding 4.47 million ETH and Coinbase having an even larger stash of 7.058 million ETH.
This implies that Coinbase and Binance possess approximately 9.58% of the 120.18 million ETH in circulation. Arkham's data also shows that Binance's largest crypto asset stash is 164.54 million BNB, worth $49.70 billion as of January 13, 2024. The second-largest asset held by the exchange is BTC, followed by tether (USDT) with 25.39 billion USDT. Apart from ether, the fifth-largest asset by value is FDUSD, of which Binance commands 1.9 billion.
Regarding Coinbase, apart from BTC and ETH, the third-largest asset by value on the San Francisco-based exchange is LINK, with a worth of $1.11 billion and 77.67 million in quantity. The fourth-largest asset is USDC, with a total of 575.63 million, followed by Coinbase's stash of 921,875 BNB, which is worth $278 million. Other notable cryptocurrency holdings on Coinbase include 930 million GRT, 11.91 million UNI, and 160 million ZRX.
The dominance of Binance and Coinbase in the crypto sector is a testament to the evolving landscape of digital finance. Their substantial holdings in various cryptocurrencies not only highlight their market strength, but also indicate an industry where influential players hold significant power. This concentration of crypto assets may shape the future trajectory of digital currency markets, potentially impacting future trends, overall liquidity of bitcoin, and the broader financial ecosystem.
What are your thoughts on Coinbase and Binance's crypto reserves? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
Should You Invest in Gold for Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you're unsure about which option to choose then consider investing in both.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is less difficult to store than stocks or bonds. It's also portable.
You can always access your gold as long as it is kept safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold usually rises when stocks fall.
You can also sell gold anytime you like by investing in it. Just like stocks, you can liquidate your position whenever you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
Don't buy too many at once. Start with just a few drops. Then add more as needed.
Remember, the goal here isn't to get rich quickly. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are often referred to as “bullion.” Bullion is the physical metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This ensures that you will receive dividends each and every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you only pay a small percentage on your gains. Plus, you can access your funds whenever you like.
What is the benefit of a gold IRA?
A gold IRA has many benefits. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They're readily available at almost all banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.
However, there are still some drawbacks. Gold is known for being volatile in the past. So it's essential to understand why you're investing in gold. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only after you have this information will you make an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
A small amount is sufficient if you plan to sell your gold. You can even manage with one ounce. You won't be capable of buying anything else with these funds.
What tax is gold subject in an IRA
The fair market value of gold sold is the basis for tax. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
Loans can be secured with gold. Lenders look for the highest return when you borrow against assets. This usually involves selling your gold. This is not always possible. They may keep it. Or they might decide to resell it themselves. You lose potential profits in either case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
What precious metals do you have that you can invest in for your retirement?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. It's durable and resists corrosion, just like gold and silver. It's also more expensive than the other two.
Rhodium: Rhodium can be used in catalytic convertors. It is also used as a jewelry material. It is also very affordable in comparison to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate is.25% each year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
cftc.gov
finance.yahoo.com
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
The best place to buy silver or gold online
To buy gold, you must first understand how it works. It is a precious metal that is very similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They are not exchangeable in any currency exchange system. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Each dollar spent earns the buyer 1 gram gold.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First off, you can go through your local coin shop. You might also consider going through a reputable online seller like eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals that offer gold at wholesale or retail prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
An alternative option to buying gold is to buy physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. Customers can borrow money from pawnshops to purchase items. Banks often charge higher interest rates then pawnshops.
You can also ask for help to purchase gold. Selling gold is easy too. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Jamie Redman
Title: Binance and Coinbase: Controlling 11% of Crypto Economy's Value and Dominating BTC and ETH Reserves
Sourced From: news.bitcoin.com/binance-and-coinbase-hold-11-of-crypto-economys-net-value-leading-in-btc-and-eth-reserves/
Published Date: Sat, 13 Jan 2024 21:30:31 +0000
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