Bitcoin (BTCUSD) has become an incredibly popular cryptocurrency pairing in 2021, as its price against the US dollar has experienced significant fluctuations and even experienced its own record-setting highs and lows during a dramatic upward surge.
Bitcoin BTCUSD can be highly affected by US news and political events, necessitating careful consideration when trading it. As such, trading Bitcoin BTCUSD requires an in-depth technical analysis.
Crypto-to-fiat currency pair
BTCUSD pairs Bitcoin, the world’s leading cryptocurrency, with the United States dollar, the most influential fiat currency on the market. This pair can be highly volatile and offers an abundance of trading strategies; news about both currencies has a major effect on its price as does US political and financial climate as well as Federal Reserve’s interest rate decisions issued eight times annually; all these events can have an immediate effect on BTCUSD price fluctuations.
In 2020, several events led to an upsurge in investor trust of BTCUSD and the cryptocurrency market overall. These included big money entering from Visa and PayPal as well as announcements by Amazon and Tesla that they would accept crypto payments as payment for ecommerce purchases. Furthermore, non-fungible tokens (NFTs) became increasingly popular, leading many traders to believe they can help blockchain technology gain widespread adoption across industries.
Crypto-to-crypto CFD
Cryptocurrency CFDs enable traders to speculate on price movements of cryptocurrency without actually owning it, taking advantage of market sentiment to speculate without risk. Prices fluctuate based on sentiment analysis and are potentially extremely volatile.
When more buyers than sellers place orders, prices go up; when there are more sellers than buyers placing orders, prices go down; this process is known as supply and demand.
Trading CFDs can be risky and isn’t suitable for all investors. Be sure to understand all risks involved and seek independent advice as required before engaging in CFDs trading. easyMarkets is an FCA-registered broker offering access to an expansive selection of CFD products including CFDs on Cryptocurrencies with low spreads, negative balance protection plans and proprietary risk management tools – you’ll even find us listed on the FCA Register of Financial Firms!
Crypto-to-fiat CFD
Cryptocurrency CFDs offer traders an affordable way to predict or speculate on future price movements of cryptocurrencies with little initial capital commitment. This form of trading differs from spot trading on exchanges where you buy directly and own cryptocurrency directly.
Leverage allows you to open positions on margin, meaning that trading at values exceeding the amount of capital in your account increases both profits and losses if prices move against you. While this feature increases profits and exposure to losses if prices fluctuate against you.
But before entering into cryptocurrency trading, it’s essential that you understand its workings and the factors affecting its price. Diversifying your portfolio reduces risks while maximising returns – this is why it is wise to select a broker offering multiple trading opportunities as well as excellent customer support and learning resources.
AvaTrade offers a wide range of crypto CFDs
AvaTrade’s award-winning CFD trading platform gives users access to a broad array of financial assets, such as stocks, cryptocurrencies, forex, commodities, ETFs and indices. AvaTrade also features an extensive array of educational articles and tutorials suited for beginners through experienced investors alike. AvaTrade is fully regulated company operating since 2006 with offices located throughout Europe, Japan Australia the British Virgin Islands South Africa
AvaTrade provides competitive spreads at no cost when opening positions, though overnight interest is charged on CFDs that remain open over weekends. Aside from that, AvaTrade also provides tools and analysis to assist traders manage their bitcoin BTCUSD positions; traders can utilize AvaTrade newsfeed alerts to stay abreast of events that could impact market conditions as well as technical indicators to make informed trading decisions.
