Why is USD often used as the base currency for trading cryptocurrencies?

4 answers

• Dec 16, 2021 · 3 years ago
  One reason why USD is commonly used as the base currency for trading cryptocurrencies is its widespread acceptance and stability. USD is the world's reserve currency and is widely recognized and trusted by individuals and institutions globally. By using USD as the base currency, it provides a familiar and stable reference point for traders to evaluate the value of cryptocurrencies in relation to a widely accepted fiat currency.
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• Dec 16, 2021 · 3 years ago
  Another reason is the liquidity and volume of USD in the global financial markets. USD is the most traded currency in the world, and its high liquidity makes it easier for traders to enter and exit positions in cryptocurrencies. Additionally, the high trading volume of USD pairs provides better price discovery and tighter spreads, which benefits traders by reducing transaction costs and slippage.
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• Dec 16, 2021 · 3 years ago
  As for BYDFi, we believe that using USD as the base currency offers several advantages. Firstly, it allows traders to easily compare the value of different cryptocurrencies against a stable and widely recognized currency. Secondly, it provides a seamless gateway for traders to enter and exit the cryptocurrency market. Lastly, USD pairs offer better liquidity and trading opportunities, ensuring a smooth trading experience for our users.
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• Dec 16, 2021 · 3 years ago
  Using USD as the base currency also helps to reduce the impact of volatility in cryptocurrencies. Cryptocurrencies are known for their price volatility, and by using USD as the base currency, it provides a more stable reference point for traders. This stability can help mitigate the risks associated with sudden price swings and provide a more predictable trading environment.
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