Why is USD dollar considered a stable currency for trading cryptocurrencies?

3 answers

• Nov 29, 2021 · 3 years ago
  The USD dollar is considered a stable currency for trading cryptocurrencies due to its widespread acceptance and use in global trade. As the world's reserve currency, the USD is backed by the economic strength of the United States, making it less prone to extreme fluctuations compared to other currencies. This stability provides a reliable benchmark for pricing cryptocurrencies and facilitates international trading.
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• Nov 29, 2021 · 3 years ago
  One of the main reasons why the USD dollar is considered a stable currency for trading cryptocurrencies is its liquidity. The USD is the most widely traded currency in the world, which means that it is easy to buy and sell large amounts of USD without significantly impacting its value. This liquidity makes it an ideal currency for trading cryptocurrencies, as it allows for seamless transactions and minimizes the risk of slippage.
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• Nov 29, 2021 · 3 years ago
  From BYDFi's perspective, the USD dollar is a stable currency for trading cryptocurrencies because it is widely accepted by major cryptocurrency exchanges and serves as the primary trading pair for many cryptocurrencies. This means that most cryptocurrencies can be easily exchanged for USD, providing liquidity and stability to the market. Additionally, the USD's stability is reinforced by the regulatory framework and oversight in the United States, which helps to maintain market confidence and reduce the risk of fraud or manipulation.
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