What are the advantages of using USD or CAD as a base currency for cryptocurrency trading?

3 answers

• Dec 27, 2021 · 3 years ago
  Using USD or CAD as the base currency for cryptocurrency trading offers several advantages. Firstly, it provides stability and reduces the risk of volatility that is often associated with cryptocurrencies. As USD and CAD are fiat currencies, they are less prone to sudden price fluctuations compared to cryptocurrencies. This stability can be beneficial for traders who want to minimize their exposure to market volatility. Additionally, using USD or CAD as the base currency allows for easier comparison and evaluation of cryptocurrency prices. Since most exchanges provide trading pairs with USD or CAD, it becomes convenient to assess the value of different cryptocurrencies in a familiar currency. This can help traders make more informed decisions. Lastly, using USD or CAD as the base currency may also provide tax advantages for traders, as it simplifies the process of calculating gains and losses for tax purposes. Overall, using USD or CAD as the base currency for cryptocurrency trading offers stability, ease of comparison, and potential tax benefits.
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• Dec 27, 2021 · 3 years ago
  When it comes to cryptocurrency trading, using USD or CAD as the base currency can be advantageous for several reasons. Firstly, it allows traders to easily convert their profits into a stable fiat currency. Since cryptocurrencies are known for their volatility, converting profits into USD or CAD can help protect against sudden price drops. Secondly, using USD or CAD as the base currency provides a familiar and standardized unit of measurement. This makes it easier to compare the value of different cryptocurrencies and assess their performance. Additionally, using USD or CAD as the base currency can simplify the process of tracking gains and losses for tax purposes. Many tax authorities require traders to report their cryptocurrency transactions in terms of their local fiat currency, so using USD or CAD as the base currency can streamline this process. Overall, using USD or CAD as the base currency for cryptocurrency trading can provide stability, ease of comparison, and simplify tax reporting.
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• Dec 27, 2021 · 3 years ago
  At BYDFi, we believe that using USD or CAD as the base currency for cryptocurrency trading offers several advantages. Firstly, it provides stability and reduces the risk of volatility that is often associated with cryptocurrencies. As a regulated exchange, we understand the importance of stability for traders. Secondly, using USD or CAD as the base currency allows for easier comparison and evaluation of cryptocurrency prices. This can help traders make more informed decisions. Lastly, using USD or CAD as the base currency may also provide tax advantages for traders, as it simplifies the process of calculating gains and losses for tax purposes. Overall, using USD or CAD as the base currency for cryptocurrency trading offers stability, ease of comparison, and potential tax benefits.
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