Binance now also allows users to spend money they don’t have. To this end, the platform has added support for Mastercard and Visa credit cards.
The use of credit cards in cryptographic currency is somewhat controversial. This is because of the risks involved. Just think of the way in which the price of the bitcoin went through an enormous fall in a short period of time last year. Coinbase therefore stopped allowing credit card purchases last year, although it allowed them later and charged extra costs to users.
Binance’s CEO, Changpeng Zhao, informs the Cointelegraph site that Binance wants to offer the customer as many options as possible to buy crypto currency. It has to be, because the market still has to grow and so as much money as possible has to go to it. According to Zhao, this is only possible if there are more and more payment methods.
Binance’s press release shows that users can use their Mastercard or Visa card to buy the largest cryptic currency: bitcoin, ethereum, litecoin and ripple. The sale of crypto currencies via credit cards is possible thanks to a collaboration between Binance and Simplex, a payment company that focuses on the sale of crypto currencies.
Not only is the number of cryptic currencies for sale with credit cards currently limited to the largest currencies, but there are also certain geographical limitations. Simplex is still a long way from being active everywhere, and in the United States it does not offer its services in all states. Finally, not every bank is supported. Some users cannot buy cryptic currency with their credit card.
Binance informs the TechCrunch site that if a purchase is made by credit card, users will have to pay a 3.5 percent fee. They also have to wait 10 to 30 minutes for their tokens. Once they are in, trading them is free on the platform.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.