BTCUSD is a currency pair which depicts the price of Bitcoin against US dollar, making it a favorite among Forex traders. Many strategies that work for other asset classes also apply when trading Bitcoin; an example would be using On Balance Volume indicator which combines price action and trading volume into one indicator.
It is a crypto-to-fiat currency pair
Launched in 2008, Bitcoin is the original and most renowned cryptocurrency. Decentralized and market driven, its price fluctuates based on demand for it; value backed up by blockchain technology which serves as an accurate public ledger – this makes Bitcoin an extremely lucrative trading instrument that AvaTrade makes accessible with low margin requirements and competitive spreads on an intuitive platform.
Traders should keep tabs on the US Federal Reserve’s rate decisions, which are released eight times annually, which can have an impact on Bitcoin/Usd prices. Furthermore, any regulations which could harm blockchain or decentralisation of cryptocurrencies would likely negatively impact BTCUSD prices; on the other hand, institutional money entering cryptocurrency scenes is seen as positive by traders, with Tesla’s investment showing growing interest for this asset which in turn may help popularise other cryptocurrencies as a whole.
It is a CFD
The Bitcoin/US Dollar pair (BTCUSD) connects one of the world’s most-traded cryptocurrencies with one of its most influential fiat currencies – the US dollar. Its price represents how many dollars it would cost to acquire one Bitcoin as its base currency (BTC). Trading CFDs provides access to high leverage on a secure and regulated platform.
Contrary to futures contracts, CFDs do not involve direct purchases and sales in the underlying asset itself; rather both parties agree on paying cash should there be any price differential in any given timeframe between their positions; meaning you could profit from rising prices and suffer losses should the market fall backwards.
Blueberry Markets enables traders to trade Bitcoin CFDs without needing a wallet and without holding funds in an exchange. Our platform features advanced risk management tools, negative balance protection, fixed spreads and deep analytic data; get started today with our free demo account!
It is a digital asset
Bitcoin is a digital asset that can be stored either at an exchange or wallet, with each Satoshi being equal to one hundred millionth of a Bitcoin.
Investors were optimistic about Bitcoin in 2020, with prices reaching a peak near $42,000. However, profits took place due to profit-taking as well as negative comments by US Treasury Secretary Janet Yellen about cryptocurrency usage.
Bitcoin’s value is determined by global supply and demand. Unlike fiat currencies, which governments can print without limit, its supply is limited in number. Furthermore, its transactions don’t require third-party processing – making international transfers simpler for individuals as well as having lower transaction fees and faster speeds than traditional banking transfers – all making Bitcoin an appealing alternative to fiat currencies.
It is a commodity
Bitcoin values are determined by supply and demand, yet are unbacked by any traditional currency. There will only ever be 21 million bitcoins ever produced – making this cryptocurrency highly resistant against inflation.
Bitcoin offers many advantages over traditional money transfers, particularly for sending remittance payments overseas. Furthermore, bitcoin transactions are cheaper and faster.
In 2020, several factors led to BTCUSD reaching new highs. Institutional investors flooded into the crypto scene; large companies like Tesla used their cash reserves to invest in Bitcoin; filings by BlackRock for spot Bitcoin ETFs also built investor confidence; however these positive fundamentals were dampened by negative remarks made by US Treasury Secretary Janet Yellen about crypto usage which caused its price to take a dramatic retracement.
