What are the advantages of using NDF instead of USD or KRW in cryptocurrency transactions?

3 answers

• Dec 16, 2021 · 3 years ago
  One advantage of using NDF in cryptocurrency transactions is the reduced exposure to foreign exchange rate fluctuations. Since NDF is settled in a different currency than the underlying asset, traders can avoid potential losses caused by currency volatility. This can be especially beneficial when dealing with cryptocurrencies, which are known for their price volatility. By using NDF, traders can hedge against currency risks and focus on the performance of the cryptocurrency itself.
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• Dec 16, 2021 · 3 years ago
  Another advantage of using NDF instead of USD or KRW is the ability to access markets that may have restrictions on traditional fiat currencies. Some countries have strict regulations on the use of USD or KRW, making it difficult for traders to participate in cryptocurrency trading. NDF provides an alternative currency that can bypass these restrictions and allow traders to access a wider range of markets. This can open up new opportunities and increase liquidity in the cryptocurrency market.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, also recognizes the advantages of using NDF in cryptocurrency transactions. With NDF, traders can enjoy faster settlement times and lower transaction costs compared to traditional fiat currencies. The decentralized nature of cryptocurrencies combined with the efficiency of NDF can streamline the transaction process and provide a more seamless trading experience. By leveraging NDF, traders can optimize their trading strategies and take advantage of the unique benefits offered by the cryptocurrency market.
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