Bitcoin has proven its resilience in an economic year marked by major events that have altered global growth, benefitting from positive headlines and an unchanged USD.
Established in 2008 by an unknown author using the pseudonym Satoshi Nakamoto, digital currency became the de-facto gold standard, providing price direction cues to many crypto pairs.
It’s a CFD
Bitcoin has attracted professional traders since it first made an appearance. As the global leading cryptocurrency, its value has seen exponential growth. Yet trading cryptocurrencies is not without risk: their prices can become highly volatile over time due to rumors, tweets or unsubstantiated news; traders must therefore be prepared for unpredictable outcomes by employing effective hedging techniques.
Physical Bitcoin investments can be complex and time-consuming to purchase, with any possible return depending on whether its price increases. CFDs offer an alternative for profiting from price fluctuations without actually owning an underlying asset – you can even trade them on margin, increasing potential profits further. It is essential to carefully consider both its advantages and disadvantages before making any decisions regarding CFD trading.
It’s a crypto-to-fiat currency pair
BTCUSD, or Bitcoin/United States Dollar, is a crypto-to-fiat currency pair which pairs Bitcoin with the United States dollar. This pair serves as a major driver in the cryptocurrency market and serves as price direction cues for many cryptocurrencies. Furthermore, it’s popular among investors looking to diversify their portfolios with both fiat currency investments and crypto investments.
The US Dollar (USD) is a fiat currency whose value is heavily affected by global economic and political events as well as domestic financial and monetary policies in its home country, the US. At present, Bitcoin traders overwhelmingly prefer trading with this nation due to its fast adoption of new technologies and reliable international currency status.
It’s a popular crypto pair
Cryptocurrency pairs are trading instruments that compare the prices of two different cryptocurrencies relative to each other. When you place a buy order for such pairs, you are purchasing the base currency while simultaneously selling off any quotation currencies that arise as a result of doing so. Although it might appear straightforward initially, trading pairs requires extensive practice and education for proper execution.
BTCUSD, or Bitcoin/US Dollar pairing, is one of the most sought-after cryptocurrency pairs. Boasting high liquidity and available on most exchanges, this pair can be traded using various fundamental and technical analysis strategies – just remember to backtest any strategy before investing real money! Furthermore, never risk more than you can afford to lose.
It’s a crypto-to-crypto pair
Crypto trading pairs allow you to directly exchange one cryptocurrency for another without exchanging them first for fiat currency. For instance, you could trade bitcoin for Tether (USDT) on platforms such as Coinbase and Binance; both assets can be valued using their respective blockchains, with USD acting as the benchmark value in each pair.
Price action in BTCUSD is determined by fundamentals relating to both currencies involved. A rate hike by the Federal Reserve would put downward pressure on Bitcoin prices, while any cuts would provide tailwinds.
There are a wide array of crypto trading pairs, each offering investors unique opportunities. Your selection will depend on your trading strategy and risk tolerance; some pairs are more volatile while others less liquid.
It’s a crypto-to-crypto CFD
Cryptocurrency CFDs can be traded against various underlying assets, with Bitcoin BTCUSD being one of them. BTCUSD is the most renowned cryptocurrency worldwide and accounts for an overwhelming majority of the global crypto market; its price fluctuation can be affected by many different factors including fundamental analysis and news events.
Trading BTCUSD CFDs allows you to profit by anticipating that prices will rise, or open short positions if you think prices may decline.
Futures contracts feature predetermined settlement dates; CFDs offer more flexible settlement terms, making them a desirable trading choice. Furthermore, their leverage levels far surpass those offered on traditional FX and commodity markets allowing traders to start investing with considerably smaller capital investments.
