What are the advantages and disadvantages of using CNY or RMB as a base currency for trading cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Using CNY or RMB as a base currency for trading cryptocurrencies can have several advantages. Firstly, it allows traders in China to easily enter the cryptocurrency market without the need for converting their currency, which can save time and money. Additionally, using CNY or RMB can provide a sense of familiarity and convenience for Chinese traders, as they are already accustomed to using these currencies in their daily lives. However, there are also disadvantages to consider. One major disadvantage is the potential impact of government regulations and restrictions on cryptocurrency trading in China. The Chinese government has implemented various measures to control and limit cryptocurrency activities, which can create uncertainty and volatility in the market. Furthermore, using CNY or RMB as a base currency may limit the options for trading pairs and liquidity, as many exchanges primarily offer trading pairs with major cryptocurrencies like Bitcoin and Ethereum against USD or stablecoins. Overall, while using CNY or RMB can have its advantages, it's important for traders to carefully consider the potential risks and limitations associated with these currencies as a base currency for trading cryptocurrencies.
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• Dec 17, 2021 · 3 years ago
  Well, using CNY or RMB as a base currency for trading cryptocurrencies has its pros and cons. On the positive side, it allows Chinese traders to easily participate in the cryptocurrency market without the hassle of converting their currency. This can save time and transaction costs. Moreover, using CNY or RMB can provide a sense of familiarity and comfort for Chinese traders, as they are already accustomed to using these currencies in their everyday lives. However, there are some downsides to consider. One major drawback is the potential impact of government regulations and restrictions on cryptocurrency trading in China. The Chinese government has taken steps to control and limit cryptocurrency activities, which can create uncertainty and market volatility. Additionally, using CNY or RMB as a base currency may limit the available trading pairs and liquidity, as many exchanges primarily offer trading pairs with major cryptocurrencies like Bitcoin and Ethereum against USD or stablecoins. Therefore, it's crucial for traders to carefully weigh the advantages and disadvantages before deciding to use CNY or RMB as a base currency for trading cryptocurrencies.
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• Dec 17, 2021 · 3 years ago
  As an expert in the field, I can tell you that using CNY or RMB as a base currency for trading cryptocurrencies has its own set of advantages and disadvantages. The advantage is that it allows Chinese traders to easily enter the cryptocurrency market without the need for currency conversion, which can save time and money. However, there are also disadvantages to consider. One major disadvantage is the potential impact of government regulations and restrictions on cryptocurrency trading in China. The Chinese government has implemented various measures to control and limit cryptocurrency activities, which can create uncertainty and volatility in the market. Additionally, using CNY or RMB as a base currency may limit the options for trading pairs and liquidity, as many exchanges primarily offer trading pairs with major cryptocurrencies like Bitcoin and Ethereum against USD or stablecoins. Therefore, it's important for traders to carefully evaluate the advantages and disadvantages before deciding to use CNY or RMB as a base currency for trading cryptocurrencies.
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