2020-2-3 12:11 |
11 years ago, the world was changed. An elusive person, Satoshi Nakamoto created Bitcoin. The digital currency solved one of the biggest issues faced by past attempts, the problem of double spending and a military grade security. The next big change came with Ethereum, by Vitalik Buterin. Buretin essentially took Bitcoin to the next level and created a digital ecosystem that offered more than just digital tokens. The Ethereum ecosystem created a whole new dimension in which people could create their own tokens and platform.
In the last few years, Bitcoin (BTC) and Ethereum (ETH) have led the crypto sphere as the dominant currencies. Even the smallest of crypto exchanges, whether with proper systems or peer 2 peer ones list these two. For traders, the fluctuating prices of both the currencies mean they can take advantage of the price difference against fiat and capitalize on it.
For advanced traders, they prefer to do away with fiat based trading pairs (such as BTC/USD) and use bitcoin ethereum exchange rate. With this, they can cut down on the charges and directly buy or sell one crypto for the other. In this, ETH is the base currency and BTC as the quote. Today, nearly every good exchange offers this trading pair.
With both currencies not matched against a fiat, the price fluctuations of both can give good opportunities for both long (buy) and short (sell) strategies for traders. In fiat quote pairs, the economic conditions of the country of the traditional currency has a large influence in prices. A good example is the recent Iranian BTC buy rush, with Bitcoin selling around USD 24,000 equivalent in Iranian Rial. With both sides of the pair in crypto, it has different factors affecting the price variations:
BTC Acceptability: Cryptocurrencies still have a long way to go before they become mainstream. However, with volatility decreasing and more and more merchants starting to accept it, it will have a positive impact on the ETH/BTC trading pair. Crypto Futures: Financial instruments such as Bitcoin Futures have given cryptocurrencies a boost. The Ethereum Ecosystem: The biggest ability of Ethereum is that it allows anyone to use the blockchain as its backbone and develop their own systems. The rise of these platforms always have a positive impact on Ethereum price.The daily trade volume of ETH/BTC is on the rise and any trader who wishes to earn profit should definitely use this pair. Yet, like all cryptocurrencies, the volatility of the market should be kept in consideration. Invest an amount that you are willing to part with in case crypto prices fall.
Image(s): Shutterstock.com
The post Using ETH BTC Trading Pair to Take Advantage in Profiting from the Crypto Market appeared first on NullTX.
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