What are the advantages of using USD or CLP as a base currency in cryptocurrency trading?

3 answers

• Dec 16, 2021 · 3 years ago
  Using USD or CLP as the base currency in cryptocurrency trading offers several advantages. Firstly, it provides stability and reduces the risk of volatility. Since USD and CLP are fiat currencies with established value, they can act as a reliable benchmark for evaluating the performance of cryptocurrencies. Additionally, using USD or CLP as the base currency allows traders to easily calculate profits and losses without the need for constant conversion between different cryptocurrencies. This simplifies the trading process and enhances transparency.
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• Dec 16, 2021 · 3 years ago
  When it comes to cryptocurrency trading, using USD or CLP as the base currency can be advantageous due to their widespread acceptance and liquidity. USD is the world's reserve currency and is widely accepted in global markets, making it easier to enter and exit positions. Similarly, CLP, as the national currency of Chile, is widely used in South American markets. By using these currencies as the base, traders can access a larger pool of liquidity, which can lead to better trade execution and reduced slippage.
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• Dec 16, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using USD or CLP as the base currency in cryptocurrency trading. By using these stable fiat currencies, traders can mitigate the risks associated with the volatility of cryptocurrencies. USD and CLP provide a reliable benchmark for evaluating the performance of cryptocurrencies and enable traders to make informed decisions. Furthermore, using USD or CLP as the base currency simplifies the trading process and enhances transparency. Overall, it is a strategic choice for traders looking for stability and ease of use.
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