The most-traded fiat currencies for trading Bitcoins
Bitcoins had been introduced to the world in 2009 as the currency of the future and as an alternative to the fiat money that has been in use for ages. Fiat money is the legal tender issued by a government decree or simply the currency that is used for all types of financial transactions in a given country.
The basic concept that differentiates cryptocurrency and fiat currency is de-centralization. The currency of a country is controlled by the government and authorized by financial institutions like banks while Bitcoin is a digital currency that has no central authority. Instead, it is purely based on blockchain technology wherein each transaction is visible to all and can be accessed by any member of the network. Each owner has equal authority.
Table of Contents
How can you own Bitcoins?
Bitcoin mining was the original way to earn this cryptocurrency. Mining powers Bitcoin creation which is achieved by solving critical mathematical problems. Several competitors vie to solve these puzzles and the one who solves it first is rewarded with a Bitcoin.
But it is not possible for everyone to earn this digital currency by the mining method. Over the years since its introduction, the interest in the concept of Bitcoins and the eagerness to do Bitcoin trading has been on the rise not only among experts who claim to understand how it works but also investors and traders with little or no knowledge of Bitcoins. This is mostly because Bitcoin and other cryptocurrency traders have been known to make quick gains in a short period. Now, many platforms like crypto exchange services, crypto brokerages, and specially designed trading apps help people to invest and trade in cryptocurrency.
Before you start trading, you have to link you bank account to the platform from where you will be trading. These exchange services then give you inputs based on the trends in the crypto market that help you to decide how much you want to invest and when. One such secure and user-friendly crypto trading app is the oilprofit.app. Other methods to own Bitcoins are peer-to-peer exchanges and Bitcoin ATMs.
Acceptance of Bitcoins as currency
With many corporate houses that have a global standing starting to acknowledge and gradually incorporate cryptocurrency as a medium of exchange for their products and services, there has been a marked rise in the acceptance of Bitcoins and other similar cryptocurrencies by businesses across all sectors. Around 15,000 businesses worldwide have started accepting payments in cryptocurrency. In the U.S alone, more than 2000 companies, both big and small, are conducting transactions in cryptocurrency.
Most traded currencies for bitcoin trading
Below is a list of those fiat currencies that have been traded the most for trading Bitcoins.
U.S. Dollar (USD)
With almost 85.5% of the market share, the USD leads the list of currencies in Bitcoin trading. With its population accepting innovations and technologies faster, Bitcoin established itself as a favored currency among its users. It is therefore not a surprise that San Francisco, the technology capital of the country, heads the list of leading cities worldwide that have adopted Bitcoins in a big way.
Several governments are still skeptical about the future of Bitcoins and so in these countries, the acceptance of Bitcoins has been gradual. India is such an example where the Bitcoin owners have first converted the Indian rupee into American Dollar and then bought Bitcoins.
Japanese Yen (JPY)
The second most used currency for trading Bitcoins is the Japanese Yen with around 5% market share. Japan has benefitted with all Bitcoin trading and investments in China coming to a standstill post the ban on Bitcoin by its government.
Euro enjoys 4.75% of the market share with the majority of the trading happening in Germany, the Netherlands, and Belgium.
Korean Won (KRW)
Since the ban on crypto-traders using anonymous bank accounts, there has been a fall in KRW trading in Bitcoin with its current market share being nearly 3.2%.
Also Read: Zcash vs Dash: Key Difference
Bitcoin is gradually but steadily gaining acceptance from governments across the globe. This trend of a few major currencies sharing the majority of Bitcoin trading may soon give way to other currencies being used to trade Bitcoins thus increasing their overall market share.