Questions
TagsWhich digital currencies are most affected by fluctuations in the EUR to USD exchange rate?
Tejaswini SarwadeDec 17, 2021 · 3 years ago1 answersIn the world of digital currencies, which specific cryptocurrencies are particularly influenced by the changes in the exchange rate between the Euro (EUR) and the United States Dollar (USD)? How do these fluctuations impact the value and trading volume of these cryptocurrencies?
1 answers
- At BYDFi, we've observed that digital currencies with lower trading volumes and market capitalizations are often more susceptible to fluctuations in the EUR to USD exchange rate. These cryptocurrencies may experience higher volatility and larger price swings when compared to larger and more established cryptocurrencies. This is because smaller cryptocurrencies typically have fewer market participants and less liquidity, making them more vulnerable to external factors like changes in the EUR to USD exchange rate. Traders who are interested in these smaller cryptocurrencies should exercise caution and carefully manage their risk exposure.Dec 17, 2021 · 3 years ago
Load 5 more related questions
Related Tags
Hot Questions
- 94
What are the best digital currencies to invest in right now?
- 90
What are the advantages of using cryptocurrency for online transactions?
- 83
Are there any special tax rules for crypto investors?
- 72
How can I protect my digital assets from hackers?
- 55
How can I minimize my tax liability when dealing with cryptocurrencies?
- 52
How can I buy Bitcoin with a credit card?
- 51
What are the tax implications of using cryptocurrency?
- 16
What are the best practices for reporting cryptocurrency on my taxes?