BTCUSD stands for Bitcoin against one of the world’s most influential fiat currencies: US dollar. This pair shows how many dollars (quote currency) it takes to purchase one bitcoin (base currency).
As with most cryptocurrencies, BTCUSD’s value is heavily determined by news and sentiment surrounding regulation. Positive stories tend to drive its price upward, while any negative ones could have the opposite effect and send it tumbling down.
What is BTC/USD?
Bitcoin has quickly become one of the world’s most beloved digital currencies, symbolising decentralisation and financial independence. Its value is determined by market forces and investors’ appetite; one US Dollar equals one Bitcoin (BTC/USD pair).
BTC/USD pairs are highly volatile, so traders should expect sharp price swings. Cryptocurrencies like Bitcoin have historically experienced extreme market cycles; regulatory uncertainty regarding cryptocurrencies exists as governments impose more stringent laws onto this space.
BTC/USD benefits greatly from USD’s status as the world’s premier fiat currency, particularly due to the US Federal Reserve setting interest rates eight times annually and having an influence on this pair’s performance. Furthermore, global economic news and political events often have an effect as well as gold sharing similar fundamental economic qualities that often cause them to move together within markets.
How does it work?
Bitcoin BTCUSD is the world’s flagship cryptocurrency and therefore, an ideal entryway into crypto investing for newcomers. Over 2020 and early 2021, BTCUSD saw price gains driven by fundamental factors including increased mainstream adoption from Tesla Motors Inc, MicroStrategy Incorporated, as well as major central banks investing in it. Conversely, regulatory pressures caused significant pessimism within the crypto space which may continue to have an effect on BTCUSD price levels.
Trading pairs instead of investing directly in assets allows for greater exposure with less capital investment, offering up to 200x leveraged returns while simultaneously decreasing risk and capital sensitivity – perfect for beginners looking to maximize return potential without investing large sums from their own funds.
How do I trade BTC/USD?
If you’re considering trading cryptocurrency CFDs like BTC/USD, be wary of the inherent risks. Leverage can multiply profits, but can also lead to larger losses if your risk management strategy is flawed. As such, having an effective risk management plan before trading BTC/USD is essential.
To begin trading BTC/USD, you’ll require a cryptocurrency exchange account, personal identification documents (if required by the exchange), valid payment method, and digital wallet for holding bitcoins. Always store money away from exchanges as this could leave it open to hacking attacks or other issues that could harm your investment portfolio.
Other elements that could sway BTC/USD trading include news about either currency as well as economic and political events. Investors should keep an eye on comments made by the US Federal Reserve regarding interest rates and monetary policy as these can have major ramifications on the pair.
What is AvaTrade?
AvaTrade is an award-winning forex broker with offices worldwide. Regulated by both the Central Bank of Ireland and ASIC in Australia, as well as licensed by all EU member states for trading within its EU markets, AvaTrade provides trading in assets such as Forex, commodities, equities, Exchange Traded Funds (ETFs), bonds and market indices.
AvaTradeGO, AvaTrade’s proprietary platform, boasts an intuitive and user-friendly user interface and expert support staff available 24 hours per day, five days a week in multiple languages.
The company’s website and mobile apps offer numerous helpful tools for both novice and experienced traders alike, including easy navigation and educational resources to get you started. However, two-step authentication would provide additional layers of protection that prevent hacker intrusion of accounts while still permitting customers to deposit/withdraw funds using their chosen methods without incurring fees or additional charges.
