Cryptocurrencies | btc vs. ustd as quote currency
Cryptocurrencies | BTC vs. USTD As Quote Currency
If you're new to trading, especially on platforms like Cryptohopper, this question might feel like a riddle wrapped in an enigma.
Don't sweat it. By the end of this guide, you'll not only understand the advantages and disadvantages of each but also know how to pick the right quote currency for your specific needs.
Now, you might be wondering, "What exactly is a quote currency?
It's the currency you use to acquire assets and the one you'll receive when selling them.
Typically, it's a Fiat currency like the USD when trading stocks, but in the world of cryptocurrency, you can use one crypto to buy another.
The choice is yours – whether to embrace the stability of Fiat or dive into the exciting world of crypto-to-crypto transactions.
Why Quote Currency Matters—Especially in Crypto
In traditional markets—think stock, commodities, and Forex—choosing a quote currency often feels like a no-brainer.
People usually go with what they have or what’s most liquid. But the game changes in crypto, where the features and quirks of each coin set them apart like night and day.
Let's cut through the noise and focus on the two prime contenders: USDT for stablecoins and BTC for the more volatile ones.
BTC- Bitcoin
Background
Bitcoin burst onto the scene in 2009, thanks to Satoshi Nakamoto.
This decentralized currency promised a world where power gets redistributed from institutions to individuals.
Sound like your kind of Utopia? Then Bitcoin, or other cryptocurrencies like BNB or Ethereum, maybe your go-to.
Pros:
Skyrocketing Potential: If you foresee a bull run, accumulating crypto by trying to increase your crypto holdings may offer the largest rewards.
Wide Range of Trading Pairs: Most altcoin pairs are available as a BTC pair. Or on a decentralized exchange as an Ethereum pair.
Predictive Power: If Bitcoin moves, others follow. This can help you minimize stop-losses.
Cons:
High Volatility: BTC’s price can swing wildly, making it a double-edged sword.
Bags Over Profits: When Bitcoin rises, your alt-coins may not keep up, leaving you stuck with them.
USDT - Tether
Background
Launched in 2014, Tether (USDT) claims to be backed 1:1 by USD.
Despite controversies around its legitimacy, it's become a behemoth in the crypto world.
Alternatives for USDT are: Actual fiat like USD/EUR, TUSD or USDC.
Pros:
Stability: USDT offers a predictable trading environment.
Safe Haven: When the market plunges, USDT tends to hold its ground.
Cons:
Limited Trading Pairs: Less flexibility in trading options.
Corporate Control: If you’re a decentralization purist, the company-managed USDT might not align with your ideology.
Making the Choice on Cryptohopper
Once you've weighed the pros and cons, hop over to the ' Base config' section on Cryptohopper. Under ' Coins and Amounts,' you'll find the 'Quote Currency' option. Pick the one that aligns with your goals and values, and you're good to go.
The Takeaway
Your choice of quote currency can make or break your trading journey. Whether you're swayed by Bitcoin's revolutionary ethos or Tether’s stable nature, the choice is yours to make.
Ready to set your trading world on fire? Start trading on Cryptohopper today!
Click here to start trading.
