Tomorrow, Binance will close trading and deposits for US-based crypto investors and traders, cutting off access to much of the altcoin market.
And while that’s likely a positive thing for crypto investors who have been burned by altcoin assets in the past, there are a number of alternatives US-based traders can visit to get a fix of the altcoin trading action.
Where Can US-Based Crypto Traders Still Invest in the Altcoin Market?
After tomorrow, the largest portion of the population of crypto traders, responsible for as much as 43% of market activity, will be barred from making deposits or making any trading on Binance, the world’s largest cryptocurrency exchange.
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Binance currently offers a few hundred different altcoin assets, ranging from common major cap coins like Ethereum, Litecoin, and Ripple, to more obscure altcoins such as Ethos, Ripio Credit Network, or Storj.
However, when Binance ushers US-based investors over to their new counterpart, potentially as few as 30 different coins could be listed and that includes Bitcoin among the number.
As regulation spreads across the crypto market, fewer and fewer crypto exchanges are allowing users from different countries trade on their platforms. As of now, the only exchange that still offers some of the more exotic altcoins that and also still allows US-based investors to trade altcoins on their platform is Kucoin, according to crypto traders. However, given the fact that regulation should only increase further, there are still many risks associated with trading on platforms outside of the US, or trading altcoins that could potentially be deemed as securities in the future.
The next best option for crypto traders is to stick with one of the US-based crypto exchanges, such as Coinbase, Gemini, Kraken, Huobi US, Bittrex, and Poloniex. While these platforms lack as large of a catalog of altcoins – far less than the 30 that Binance US is considering – they do offer crypto traders from the US an added layer of safety and security.
The assets listed on Coinbase, for example, are known to comply with US law and have been extensively vetted by Coinbase’s team in accordance with regulatory guidelines established by the SEC and other government entities.
With much of the altcoin market cut off from the largest portion of traders, the market is at an impasse and should transform in the coming days as the value perceptions of altcoins change as a result of increased regulation.
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Altcoins that have the support of the likes of Coinbase and other regulatory friendly platforms are likely to dominate in the future simply due to the assets becoming a safer investment compared to other crypto assets. Those that aren’t listed on these exchanges, will be viewed by investors as potentially too risky and could suffer additional losses as a result.
