BTCUSD represents the combination of one of the world’s premier cryptocurrencies with one of its leading fiat currencies: USD. Bitcoin prices can be affected by various factors including investor sentiment, regulatory changes and media coverage.
Cryptocurrency investments can be risky; before trading, please carefully consider your investment objectives, financial situation and risk tolerance.
What is BTC?
Bitcoin (BTC) is the first widely adopted cryptocurrency. As digital money, it allows for secure peer-to-peer transactions over the internet.
Bitcoin is a decentralized currency, meaning no central authority controls it. Instead, its management is handled by a network of computers using blockchain technology that use decentralized verification of transactions to safeguard value against inflation or manipulation. This prevents inflation while protecting value over time.
Investors can purchase and sell bitcoin through cryptocurrency exchanges for cash, or store it in digital wallets that provide private keys for accessing funds. Thanks to its decentralized nature, there are no transaction fees associated with buying and selling Bitcoin; plus it allows fast, convenient global transactions. Bitcoin can also serve as a store of value in similar ways to gold; its scarcity provides extra security while small payments can be broken up into fractions for smaller payments.
What is BTCUSD?
The BTC/USD pair indicates how many dollars (the quote currency) it would take to buy one bitcoin* (the base currency). Since its launch in 2009, Bitcoin has quickly become the world’s leading cryptocurrency – representing financial independence and decentralisation.
Institutional funds continued to pour into the crypto scene in 2021, providing BTCUSD with powerful fundamental benefits. Furthermore, major companies including Tesla invested significant sums of capital into this digital coin.
As one of the premier crypto-to-fiat pairs, Bitcoin’s price tends to move closely in sync with USD. This trend is especially evident during US Federal Reserve interest rate decisions (released eight times annually). Due to this volatility, BTC/USD CFD trading offers traders an opportunity to take advantage of market movements either way. *Please remember that both cryptocurrency trading and CFDs pose high levels of risk – before beginning any trade, ensure you fully understand all risks involved before placing orders or trading any CFD.
What is AvaTrade?
AvaTrade is an online broker offering an array of trading platforms and instruments, as well as excellent educational resources and low account minimums – making it an excellent choice for new or undercapitalized traders alike.
The broker is a member of CIRO (Canadian Investor Protection Fund), adhering to best practices regarding cybersecurity. Furthermore, it operates globally across leading jurisdictions with segregated client funds.
Traders can deposit and withdraw funds with major credit and debit cards as well as e-wallets; withdrawals are processed within one to five business days.
AvaTrade provides its clients with access to an array of research tools, such as Market Buzz, Analyst Views and Featured Ideas; daily market video; an economic calendar; ZuluTrade AvaSocial DupliTrade for copy trading support and an economic calendar are also offered by AvaTrade; it partners with Trading Central for powerful trading research capabilities directly integrated with its web platform with all features being made freely available for clients’ use by Trading Central.
How to Trade BTCUSD
BTCUSD CFDs allow traders to trade the price movement of Bitcoin without actually purchasing its underlying asset, thus lowering entry costs and expanding your potential market exposure. However, trading leveraged instruments comes with increased risks which should always be carefully managed before entering any trade position.
With AvaTrade, traders can trade cryptocurrency pairs such as Bitcoin against major fiat currencies like the USD. When buying or selling pairs, AvaTrade matches your order with sellers or buyers at competitive prices to complete it successfully.
The USD is a key influencer on Bitcoin and other cryptocurrencies as the world’s most widely held fiat currency. A rate rise may pressurize it lower while cuts could provide relief. Regulator events can have an effect; positive comments from major regulators could drive prices higher while negative comments could put downward pressure. A useful technical indicator to monitor is On Balance Volume (OBV), which measures how much money flows into an instrument.
