How to Trade Bitcoin BTCUSD With AvaTrade

Bitcoin BTCUSD is the premier crypto-to-fiat pair, providing direction cues to almost all other cryptocurrencies and boasting strong positive correlation with gold as both share fundamental economic properties such as protecting against inflation and fiat currency volatility.

As a currency trader, you may already know the major pairs. But you might not know about BTCUSD – one of its less well-known counterparts.

Cryptocurrency CFD

Cryptocurrency CFDs (or Contract for Difference) allow traders to speculate on the price movements of cryptocurrency without buying and selling actual digital assets themselves. Trades often occur on regulated trading platforms such as Admirals Markets UK Ltd and are subject to margin and governance costs as well as the risk of losing your entire investment.

While Bitcoin USD (BTCUSD) has experienced an upward surge this year, its price recently retraced back towards its All Time High levels and currently sits around USD $30,000. Institutional money may soon enter the cryptocurrency market a la Tesla’s acceptance of it; however, regulatory risk still poses a threat; with certain countries showing little enthusiasm towards cryptocurrency as investments. Traders should monitor how this may impact BTCUSD; for instance if rates rise due to an increase in Fed policy then BTCUSD prices would likely decrease; otherwise the US Dollar will strengthen and vice versa causing its price drop and vice versa reducing BTC price drop

AvaTrade

AvaTrade is an award-winning forex broker offering traders of all skill levels a premium trading experience through their MetaTrader 4 platform and wide variety of financial instruments. Their robust platforms and unparalleled customer service make AvaTrade an excellent choice, available in 15 languages with various support options such as phone and email available 24/7.

Traders will find an abundance of educational resources on this broker website, such as an online library and comprehensive FAQ page. In addition, there is an insightful blog that offers daily market commentary and analysis; additionally there are video tutorials covering topics such as spread betting and Gartley patterns.

AvaTrade does not charge fees to open an account, and you can deposit funds using credit or debit card, wire transfer, e-wallets such as Skrill Neteller WebMoney etc. Furthermore it provides clients with a demo account so that they may practice trading before risking real money; its 7 regulatory authorities and segregated accounts provide added security.

Crypto-to-fiat currency exchange

Cryptocurrencies and fiat currencies both constitute forms of currency, yet their characteristics differ considerably. Fiat money is controlled by government authorities while cryptocurrency remains decentralized and independent from central banks – this distinguishing feature distinguishing cryptocurrencies from one another is what makes them so special.

Use a crypto-to-fiat exchange to easily buy and sell cryptocurrency, typically accepting bank account transfers, payment cards, and wire transfers as forms of fiat currency. Many also provide mobile apps which make purchasing crypto easy.

Fiat-to-crypto trading pairs can also be found on centralized cryptocurrency exchanges like Coinbase, which enables you to link your bank account or debit card and purchase cryptocurrency directly with cash. Furthermore, there are some Bitcoin ATMs that accept local currencies – cryptocurrency transactions are typically instantaneous with minimal costs of $0.01; fiat transfers often take days with higher transaction fees attached.

Trader’s guide

Professional traders from all around the globe have taken notice of Bitcoin. As this market can fluctuate drastically in an instantaneous manner, traders need to understand its foundational principles to succeed with trading Bitcoin successfully.

BTCUSD’s price fluctuation can be directly impacted by two main elements of US finance – the USD and financial climate overall. For instance, this exchange currency’s value is closely connected with interest rates set by the Federal Reserve which may lead to fluctuations in price of BTCUSD pair. Furthermore, high-profile figures like the Chairman of the Fed could cause pessimism within crypto market.

When trading Bitcoin, it is wise to adopt a strategy that takes into account market volatility and risk. One popular approach is using the On Balance Volume (OBV) indicator, which combines price with trading volume for analysis of the market. OBV indicators can be found across most trading platforms as well as being utilized by forex traders.