BTCUSD is the top cryptocurrency pair and serves as the benchmark of the entire crypto market. Its volatility makes trading immensely rewarding; moreover, as its top selling digital currency it presents unique trading opportunities to traders.
Many traders are well acquainted with the major and exotic currency pairs; however, some may not yet be acquainted with Bitcoin BTCUSD pair.
It is a crypto-to-fiat currency pair
BTCUSD is an innovative cryptocurrency CFD that brings together one of the world’s premier crypto coins – Bitcoin – with one of the world’s most significant fiat currencies – the US dollar. Highly volatile and with plenty of room for speculation.
Cryptocurrencies do not depend on banks and governments for support; rather, they utilize peer-to-peer technology as a secure public ledger of all transactions. Bitcoin is among the oldest and most renowned cryptocurrencies with an available supply limit of 21 million coins.
The pair’s price can be affected by news about both currencies, with the USD especially responsive to events and comments by the Federal Reserve. Investors also react strongly when regulatory changes could have an effect on cryptocurrencies; for instance, BTCUSD saw its price retracement early 2021 due to Treasury Secretary Janet Yellen’s statements calling on Congress to regulate cryptocurrency use resulting in fear and uncertainty among investors and thus leading them back away from buying it altogether resulting in price volatility and subsequent decline.
It is a CFD
The BTCUSD pair combines the world’s most beloved cryptocurrency with one of the most influential fiat currencies – USD. This trading instrument provides traders with exposure to Bitcoin’s price movements without needing to own actual crypto – ideal for short-term trade setups.
Cryptocurrency CFDs offer an effective and cost-efficient way of trading the price of bitcoin and other digital assets without incurring exchange and network fees directly.
Admirals MetaTrader 5 WebTrader makes it easy and effective to develop a trading strategy for this pair. Simply open a 5-minute chart, apply 34 and 55 Exponential Moving Averages (which you can hover over to decipher), 2 Stochastics (8,3,1 and 13,3,1) as overlays, as well as an MACD indicator (34,89,34) in this strategy for day trading Bitcoin CFD. This provides a simple yet effective day trading strategy.
It is a crypto-to-crypto pair
Cryptocurrency traders are familiar with both major and minor currency pairs. But BTCUSD stands out as an unusual one because it combines one of the world’s most influential cryptocurrencies, Bitcoin, with one of the US dollar’s primary reserve currencies, the USD. Here, one Bitcoin is quoted in terms of how much USD will it take to buy one!
Bitcoin is one of the world’s best-known cryptocurrencies and widely regarded as an original gangster coin. Being the first digital currency backed by blockchain technology, it has drawn widespread interest and offers traders an exciting trading opportunity by enabling price speculation.
The USD is one of the world’s most influential fiat currencies, accounting for an impressive 88% of central bank foreign reserves. Its value can be affected by various factors ranging from economic news and events to decisions by the US Federal Reserve that it makes 8 times annually regarding interest rate decisions.
It is a crypto-to-crypto CFD
Cryptocurrency is a virtual currency used for secure online transactions without third parties, powered by blockchain technology and decentralized digital asset. Bitcoin is the most well-known and accepted form of cryptocurrency exchange; its usage also serves as a benchmark currency among other cryptocurrencies.
The BTCUSD pair is an increasingly popular way to trade Bitcoin against one of its leading fiat currencies – the US Dollar. Although highly unpredictable, this pair offers plenty of opportunity for speculation.
The rally in BTCUSD that began in 2021 can be attributed to several factors, including institutional money and crypto’s rising popularity. Major companies such as Tesla and MicroStrategy Incorporated have invested in Bitcoin which has increased legitimacy of the crypto industry and increased demand. Furthermore, weakening USD and positive comments by Treasury Secretary Janet Yellen about crypto have also been contributing factors.
