BTCUSD has seen tremendous gains this year thanks to the continued inflow of institutional money into crypto. This trend should continue throughout 2021.
The pair can also be affected by news about the US Federal Reserve and political events that are of great significance; positive developments could propel it upward, while bad ones could bring it tumbling down.
It is a crypto-to-fiat currency pair
BTCUSD is one of the most widely traded cryptocurrency pairs against the US Dollar. This pair often serves as a benchmark for other crypto prices and shows strong correlation with gold’s long-held status as an inflation hedge.
BTCUSD surged above $42,000, only to retreat back under $30,000. This could be explained by profit-taking or negative comments by U.S. Treasury Secretary Janet Yellen about cryptocurrency assets.
When purchasing a crypto pair with USD as its base currency, traders are buying BTC and selling USD, betting that BTC’s price will either increase or decrease against its USD counterpart. When purchasing on an exchange that requires ID documents and photos for verification, traders can then use their BTC to buy other cryptocurrencies with it. Once verified, traders may then use it to trade.
It is a CFD
CFDs (Contract for Difference) are derivatives, meaning that you do not own the asset on which your position is based; rather, you purchase or sell contracts that cover price-changes of the underlying asset and trade them through a broker; these contracts may prove profitable or unprofitable depending on their performance.
CFD trading provides leverage, meaning you can trade more assets with the same capital. While this could increase profits and decrease risk, it also introduces more risks into the equation; so it’s essential that you carefully assess your risk tolerance and come up with a solid trading strategy tailored specifically to your trading goals.
The BTC/USD pair combines one of the world’s premier cryptocurrencies – Bitcoin – with one of the world’s most widely-held fiat currencies: the US dollar. This highly volatile pair represents how many dollars must be paid to purchase one bitcoin (the base currency). Trading this market requires both technical and fundamental knowledge as well as risk management tools like stop loss/take profit strategies to remain successful.
It is a crypto-to-crypto pair
Crypto trading pairs can provide investors with numerous investment opportunities. Trading crypto pairs allows traders to profit from market volatility by taking short positions when an asset’s price drops and long ones as its value rises; but investors must be wary that there is room for mistakes to occur.
Bitcoin BTCUSD pairs combine one of the world’s premier cryptocurrencies with one of the world’s most influential fiat currencies – US Dollars. As the USD serves as global monetary reserve currency, its influence can impact Bitcoin prices; additionally, interest rate decisions from the Federal Reserve occur eight times annually and can further sway prices.
Due to this pair’s extreme volatility and massive profit potential, trading it can be both exciting and risky. Before beginning trading it is crucial that you understand all of the variables influencing its price as well as selecting one that aligns with your risk profile and trading strategy.
It is a crypto-to-crypto CFD
Cryptocurrency CFD trading can be an ideal way to gain exposure to the cryptocurrency market without purchasing actual coins directly. Because CFDs are leveraged instruments, you can trade with minimal capital while profiting from both rising and falling prices.
Bitcoin has quickly become one of the world’s most recognized digital currencies, yet its price remains highly unpredictable. Since 2009 when its creation, its value has skyrocketed; yet now trades below $10,000. This drop may be due to regulation issues as well as fears regarding an impending halving event that will reduce miners’ rewards.
The BTCUSD pair is an attractive option for traders looking to speculate on the exchange rate between Bitcoin and US Dollars. The pair represents how many dollars (quote currency) it takes to purchase one bitcoin (base currency). BTCUSD’s volatility can often be driven by news or speculation, while it can also be affected by political events in the US such as talks about raising the debt ceiling or possible government shutdowns.
