What are the advantages and disadvantages of using Euro or AUD as a base currency in cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  One advantage of using Euro or AUD as a base currency in cryptocurrency trading is that it allows for easier conversion between fiat currencies and cryptocurrencies. This can be beneficial for traders who want to quickly enter or exit positions without having to go through multiple conversions. However, one disadvantage is that the liquidity of Euro or AUD pairs may be lower compared to more popular base currencies like USD or BTC. This can result in wider spreads and potentially higher trading costs.
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• Dec 18, 2021 · 3 years ago
  Using Euro or AUD as a base currency in cryptocurrency trading has its pros and cons. On the positive side, it can provide diversification for traders who want exposure to different fiat currencies. Additionally, it may be more convenient for traders located in the Eurozone or Australia. However, one drawback is that the availability of Euro or AUD pairs may be limited on some exchanges, which can restrict trading opportunities. Furthermore, fluctuations in the value of Euro or AUD against other major currencies can impact the profitability of trades.
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• Dec 18, 2021 · 3 years ago
  As an expert in cryptocurrency trading, I can say that using Euro or AUD as a base currency has its advantages and disadvantages. One advantage is that it can provide a hedge against the volatility of other base currencies. For example, if the USD is experiencing significant fluctuations, having Euro or AUD as a base currency can help mitigate the impact on trading positions. However, a disadvantage is that the liquidity of Euro or AUD pairs may be lower, which can result in slippage and potentially affect trade execution. It's important for traders to consider these factors when choosing a base currency for cryptocurrency trading.
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