Recent statistical data reveals that Binance and Coinbase, two major players in the cryptocurrency exchange industry, collectively possess 11.85% of the $1.68 trillion digital currency economy. Additionally, these influential trading platforms control 7.83% of the total bitcoin supply, underscoring their significant market influence.
Binance and Coinbase's Market Dominance
Binance and Coinbase are recognized as the world's leading crypto exchanges, both in terms of their daily trading volumes and the cryptocurrency reserves they manage. In the latest 24-hour period on Saturday, Binance took the lead with a substantial $15.87 billion in trading activity, while Coinbase, securing its position as the second-largest exchange on the weekend, witnessed $2.91 billion in trades.
Onchain data sourced from Arkham Intelligence further reveals that these exchanges collectively hold cryptocurrencies valued at $199.14 billion, which represents 11.85% of the entire value of the crypto economy. Binance leads the pack with $136.47 billion, while Coinbase holds approximately $62.67 billion in crypto value. Statistics also indicate that Coinbase holds 978,577 BTC, while Binance commands 666,922 BTC.
Together, the duo controls 1,645,499 BTC, which is worth $70.49 billion at the current exchange rates, or 7.83% of BTC's capped supply of 21 million. Currently, Coinbase and Binance command approximately 8.39% of the 19,597,705 BTC in circulation. Both exchanges also hold a significant amount of Ethereum, with Binance holding 4.47 million and Coinbase possessing an even larger stash of 7.058 million ether.
This means that Coinbase and Binance hold around 9.58% of the 120.18 million ether in circulation. According to Arkham's data, Binance's largest stash of crypto assets is the 164.54 million BNB, worth $49.70 billion as of January 13, 2024. The company's BTC stash is the second largest, and tether (USDT) is the third largest asset by value on Binance, with the exchange owning 25.39 billion USDT. Apart from ether, the fifth largest asset by value is FDUSD, with Binance commanding 1.9 billion.
Regarding Coinbase, apart from BTC and ETH, the third largest asset by value on the San Francisco exchange is LINK, with the exchange owning 77.67 million worth $1.11 billion. The fourth largest asset on Coinbase is USDC, with 575.63 million, followed by the company's stash of 921,875 BNB worth $278 million. Other notable 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 highlights the evolving landscape of digital finance. Their significant holdings in various cryptocurrencies not only demonstrate their market strength but also signify an industry where major players exert considerable influence. This concentration of crypto assets may shape the future trajectory of digital currency markets, potentially impacting future trends, bitcoin's overall liquidity, and the broader financial ecosystem.
What are your thoughts on Coinbase and Binance's crypto reserves? Share your opinions about this subject in the comments section below.
Frequently Asked Questions
What is the best precious-metal to invest?
This depends on what risk you are willing take and what kind of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if you need a quick profit, gold may not be for you. You should invest in silver if you have the patience and time.
Gold is the best investment if you aren't looking to get rich quick. Silver may be a better option for investors who want long-term steady returns.
How much should your IRA include precious metals
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might think about buying physical coins such a bullion bar or round. Also, you could buy shares in companies producing precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. This type of investment has its downsides.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
Insurance is necessary if you wish to keep your money safe from the banks. Most insurers require you to own a minimum amount of gold before making a claim. You might be required to buy insurance that covers losses up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more costly than gold futures. However, futures contracts give you flexibility when buying gold. They let you set up a contract that has a specific expiration.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. However, it does cover damage caused by natural disasters. You might consider purchasing additional coverage if your area is at high risk.
You should also consider the cost of storage for your gold. Insurance doesn't cover storage costs. In addition, most banks charge around $25-$40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must retain them for as long and as you require.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After receiving your application, the company will review it and mail you a confirmation letter.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Who is the owner of the gold in a gold IRA
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
Consult a financial advisor or accountant to determine your options.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These rules vary from one state to another. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Do You Need to Open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. You should also consider using a third party custodian to protect your assets and give you access at any time.
You won't get any returns until you retire if you open an account. Do not forget about the future!
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
investopedia.com
bbb.org
How To
The best place to buy silver or gold online
First, understand the basics of gold. The precious metal gold is similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They aren’t exchangeable in any currency exchange. A person can buy 100 grams of gold for $100. For every dollar spent, the buyer gets 1 gram of Gold.
You should also know where to buy your gold. There are several options available if your goal is to purchase gold from a dealer. First off, you can go through your local coin shop. You might also consider going through a reputable online seller like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers charge a 10% to 15% commission per transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
You can also invest in gold physical. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. 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.
A third way to buy gold? Simply ask someone else! Selling gold can also be done easily. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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