Cryptocurrency pairs and trading them
The main instrument used in Forex trading is currency pairs, the asset used to open orders in the trader's terminal.
With the advent of cryptocurrencies, a new asset emerged: cryptocurrency pairs, in which the base currency is the cryptocurrency and the quote currency is the settlement currency.
Currently, the quote currency is the US dollar in most cases, with rare exceptions, the euro.
Therefore, the Bitcoin/US dollar exchange rate would be BTCUSD - 5257 US dollars.
Cryptocurrency trading using pairs is quite similar to trading regular currency pairs, but there are some unique features.
The most popular cryptocurrency pairs are:
- BTCUSD – Bitcoin
- BCHUSD – Bitcoin Cash
- XRPUSD - Ripple
- LTCUSD - Litecoin
- ETHUSD - Ethereum
- DASHUSD – Dash
These are the ones that can be found at almost every broker that allows trading virtual currency - http://time-forex.com/kriptovaluty/brokery-kriptovalut and they offer more attractive trading conditions.
Basic trading conditions:
1. Volumes – trade volumes are calculated in lots, with one lot ranging from 1 unit (as with Bitcoin) to 100 units (with Ripple).
2. Leverage – this also varies depending on the broker providing the service; the available leverage can range from 3 to 50.
3. Trading hours – cryptocurrency pairs have given us a real gift: they can be traded 24/7, that is, seven days a week. Finally, traders have the opportunity to earn money even on Saturdays and Sundays.
4. Minimum trade size – for expensive cryptocurrencies (Bitcoin, Ethereum, Litecoin, Dash) it is 0.1 lots, for cheap ones (Ripple, EOS) it is 0.01 lots.
5. Swap – there is a negative and quite significant swap, so you will have to choose intraday trading.
Brokers are expanding the list of available instruments every day; some brokerage firms already offer over three dozen cryptocurrency pairs in their trading terminals.
Trading cryptocurrencies on the exchange http://time-forex.com/kriptovaluty/treyding-kriptovaluty using a professional trading platform takes this trading option to a higher level, allowing you to multiply your earnings.
