Crypto-Currency: itBit Trading Volume Shows Successful PayPal Crypto Integration

PayPal Crypto Payments Widespread Adoption

PayPal Crypto Payments Widespread Adoption

itBit exchange, the digital asset exchange that provides liquidity for PayPal, has seen a tremendous upswing in trading volume in the three weeks since PayPal announced the integration of digital asset payments on their platform. Owned by Paxos, PayPal’s broker-dealer, itBit has seen close to double its record trading volume since PayPal’s announcement, indicating that the PayPal digital currency platform has a high utility among its users. Below, see itBit’s recent growth in trading volume.

itBit trading volume growth

Source: https://nomics.com/exchanges/itbit#chart

Noting the utility that PayPal is seeing within crypto payments, this trend’s biggest takeaway is that PayPal is finally giving crypto a platform to be used for what it was created to be: a permissionless peer-to-peer transaction network. While Coinbase and other digital asset custodians have enabled users to exchange freely amongst each other, PayPal is mainstreaming crypto’s original purpose as a currency, restoring validation to crypto as a “cryptocurrency.”

While PayPal’s efforts to mainstream the use cases of digital assets is driving incredible trading volume on exchanges, their adoption is just icing on the cake for the crypto ecosystem. As Bitcoin nears its previous all-time high, there is no stopping the increasing pace of innovation and adoption of blockchain technology as a pathway to financial freedom.

By Liam McDonald

The Iterations of Cryptocurrency Trading and What to Look For

The Iterations of Cryptocurrency Trading and What to Look For

The first iteration of cryptocurrency trading when Bitcoin was created in 2009 was peer to peer trading. Trading partners would meet in a physical location where they would trade cash for cryptocurrency. LocalBitcoins was a prominent platform to orchestrate these trades, however, trading partners began using alternate payment methods, like Paypal, for Bitcoin. Those who used alternate platforms later realized there was inherent “chargeback risk” in accepting Paypal payments for irreversible payments like Bitcoin, creating the need for a second iteration of cryptocurrency trading.

The second iteration of cryptocurrency trading was in the form of Cexes (Centralized Exchanges) like Coinbase, Kraken, Gemini, etc. These exchanges accepted multiple forms of payment: debit card, wire transfer, ach transfer and conducted trades on an orderbook where they would match sellers and buyers. However, Cexes were plagued with problems like social engineering attacks, sim swapping, and server problems, never mind users not being able to sign up for accounts during the bull run of 2017, crypto users not passing KYC/AML, and account closures for innocuous actions. The cryptocurrency space was in dire need of a third iteration of cryptocurrency trading, but there was not enough adoption for Decentralized exchanges with orderbooks.

The third iteration of cryptocurrency trading is where Uniswap comes into play. Uniswap is an iteration of cryptocurrency trading that allows users to trade any ERC-20 asset they want without orderbooks, having to make an account, passing kyc/aml, server problems, spoofing transactions (exchanges who fake their volume), risk of sim swap attacks or hacking risk. This third iteration of cryptocurrency trading is made possible by “liquidity pools,” assets provided on demand by liquidity providers in exchange for a 0.3% fee. A uniswap liquidity pool is made up of two assets, with 50% of each asset in the pool. The most common makeup is 50% WETH (ERC-20 token of Ethereum) and 50% of another token.

In conclusion, the progression of crypto trading has created the opportunity for Uniswap to provide a seamless experience for crypto users. While it is now easier than ever to trade crypto with liquidity pools, atomic swaps, the fourth iteration of crypto trading, are on their way to maturity, so be on the lookout as more of these swaps enter the ecosystem.

By Jacob Stelter