On many crypto exchanges, the Bitcoin price is displayed and billed in USD. The equivalent value is only converted into euros on the recipient's account when the wallet is paid out. Investors should therefore also keep an eye on the Bitcoin exchange rate USD, in order to be able to compensate for possible impending exchange rate losses of the euro against the USD if necessary through early or later payments.
The Bitcoin exchange rate can change significantly every day. Strong price fluctuations are almost common for cryptocurrencies and especially Bitcoin and increase the risk of speculation accordingly. If you closely follow the price development, you can take profits or avoid possible losses more efficiently through necessary, quick trading decisions.
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How does Bitcoin differ from other currencies such as the USD?
While real currencies like the euro or US dollar are issued by the central or central banks, put into circulation and are subject to government control and regulation, cryptocurrencies are involved about digitally generated currencies, which, like Bitcoin, are generated within the decentralized network by the users of the community through the so-called mining. Based on algorithms, new bitcoins are generated (mined). This is done without any intervention by official bodies such as regulators or a central bank and is purely electronic. Banknotes or coins do not exist with cryptocurrencies.
Payments in cryptocurrencies are therefore only made electronically, with very high speed, inexpensive and completely anonymous. Although this has also opened the door to illegal trade in goods or services in the darknet, one should not see the benefits of digital money as one-sidedly negative and ultimately money laundering and crime will not die out in relation to real currencies as long as funds are available and find ways to do it.
While real currencies depend on many influencing factors such as economy, politics, interest rate decisions by central banks, etc., the Bitcoin market is regulated by supply & demand. But here too there are influences that in turn drive supply and demand in one direction or the other. What causes the strong exchange rate fluctuations in a specific case depends on several factors that are currently up to date in the Bitcoin News.
Overall, Bitcoin offers some advantages over the real currencies, on the other hand, there is also a high hacker vulnerability, which is one of the biggest problems of some crypto exchanges. Advantages of Bitcoin compared to real currencies
- Fee-free transfers in Bitcoin worldwide
- Complete anonymity in the network
- User identification only via a number and character string
- No user blocking or censorship
- High speculation gains possible when trading on crypto exchanges, but also high losses
- Counterfeit security through documentation the transaction history of each individual Bitcoin coin
- inflation security by limiting the ma Maximum number of bitcoins that can be generated (21 million)
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What really influences the Bitcoin price?
Reasons for price changes that make investors hesitant or euphoric are conjectures. It is unclear whether and to what extent these putative reasons influence the Bitcoin price positively or negatively. However, one essential factor cannot be dismissed out of hand: New announced regulatory measures by the international supervisory authorities always result in a lower trading volume and thus a fall in price.
With positive messages such as With the introduction of Bitcoin Futures in December 2017, the Bitcoin community was delighted with the first step towards mainstream upon entering the traditional financial market of the crypto currency. The Bitcoin dollar exchange rate catapulted almost to the top of the $ 20,000 mark, the all-time high. However, the hype did not last long and things started to go down in early January 2018.
Many of the messages that cause a decline in demand often fail to get through to investors. Or they are overlooked, not linked to the current price behavior and investors cannot explain what is suddenly going on in the crypto market. One reason for this is that the Bitcoin News are very complex and international. The crypto market worldwide is dependent on government regulation decisions - and strictly speaking, on political or economic influences - such as also in the Asian countries China or South Korea. Anyone who thinks these countries are far away, act in isolation and therefore without much exchange rate influence - far from it.
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Global influence on the Bitcoin course dollar
In the USA, the requirements were met the crypto exchanges further tightened, while in Japan trading was suspended for a month due to a lack of compliance with the legal requirements for two crypto exchanges. A continuation of the trade can then only be enforced under increased conditions. In South Korea, state officials are unlikely to have cryptocurrencies at all, and Russia also wants to strictly regulate the crypto market. In China, capital flight is a big issue, because many investors are trying to get their wealth out of the country by investing in Bitcoin. China also wants to crack down on this and also prohibited payment service providers and banks from doing bitcoin business. Like South Korea, the Chinese government is considering a future trade ban.
India, on the other hand, wants to make Bitcoin accessible only to investors who are proven not to have committed fraud, illegal transactions and tax evasion. Bitcoin as a means of payment or other transactions would also be off the table in India, since Bitcoin would only be accepted as a speculation object for honest investors. As a result, large markets would be severely restricted as far as the use and trading of bicoin and thus supply and demand are concerned and which has a direct impact on the Bitcoin price. Last but not least, the European supervisory authorities want to follow suit and regulate Bitcoin trading according to the American example. So far, people have been moving in an unregulated gray area.
If a stock exchange is closed, the sale of bitcoins from the company can also have a negative impact. In order to satisfy creditors of insolvent crypto exchanges or to dissolve the company due to a lack of compliance, the bitcoins are sold from company proceeds. The sale of three-digit million amounts caused the price to drop due to too high a supply compared to demand.
The miners' hunt for cheap electricity
To mine bitcoins, extremely high amounts of electricity are required. High-performance computers calculate complex algorithms around the clock with enormous energy expenditure. It is estimated that this requires annual electricity consumption, which low-cost Denmark consumes for the whole country in the same period.
Many European electricity companies no longer want to make cheap electricity available for mining, On the part of the energy providers, the interest in cheap electricity sales for crypto mining is extremely low, does not fit the business strategy or the demand simply cannot be met. The cheap electricity sources in Scandinavia - mainly wind & water - could not be sufficient for this either. China also wants to withdraw, because there are numerous mining companies that benefit from the cheap electricity. For Bitcoin and other crypto speculators, the outlook is rather bleak, because reduced and expensive mining does not have a positive effect.
But it is not only the high power consumption that makes mining more expensive and difficult does. Since the maximum number of bitcoins to be mined is limited to 21 million and is intended to give the digital currency value stability, bitcoins are becoming scarcer by the day and scarce goods are valuable. This built-in course driver outweighs the course brakes such as regulatory requirements, hacker attacks or insolvent crypto exchanges, because there will definitely not be more than 21 million bitcoins and this limit seems to have been reached soon.
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Immediate course drivers
- Positive Messages such as Introduction of Bitcoin futures or other new financial products based on Bitcoin
- Solution of technology problems & technical progress for blockchain & Co., applications etc.
- Increasing scarcity of the total number of Bitcoins still to be mined 21 million pieces
Immediate price brakes
- Negative messages such as phishing or hacker attacks, manipulation, theft on crypto exchanges
- Bankruptcy of large crypto exchanges, suspension of trading, technical problems
- Rising electricity prices, poor conditions for mining companies
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How do you convert Bitcoin USD?
Most crypto exchanges state the current Bitcoin exchange rate USD or Euro for a full Bitcoin. If you want to know exactly, because e.g. Has only invested proportionately in Bitcoin, simply accepts the Bitcoin converter from Blockchaincenter https://www.blockchaincenter.net/rechner/.
The converter shows you all units of the digital currency at the current Bitcoin dollar or euro exchange rate and also provides the information in a convenient overview down to the smallest decimal place after the comma, the satoshi. Of course, you can also enter the amount in USD or Euros you intend to invest and calculate how much your share in Bitcoin is at the current rate. A minimum investment amount is not necessary, so that even small investments such as 100 EUR are possible.
With the crypto exchanges we tested you not only get the current Bitcoin exchange rate dollar or euro, but you can also set up your wallet directly, make the deposit to the account with the desired payment method and conveniently process your purchases and sales of the crypto currencies you are interested in.
Of course Your personal requirements for the right crypto exchange play a big role, e.g. what cryptocurrencies you want to trade and at what price. Please pay attention not only to this, but also to the seriousness, regulation, security and the scope of the offer. You can register via our website directly with the provider.
Conclusion on the Bitcoin exchange rate dollar
The special features of crypto currencies in contrast to regulated currencies and recognized means of payment such as the euro or US dollars, generally make it harder for investors to understand the price development. If companies sell their larger Bitcoin holdings, for example because they are not allowed to conduct Bitcoin transactions - as in China - for regulatory reasons, this has a negative impact on the Bitcoin price. Of course, investors always find out about this afterwards. Hacker attacks and phishing are also to be expected more frequently, at least at the moment. The technology is not yet mature enough to offer sustainable and secure protection. Even after these incidents, the price usually drops because investors are unsettled and may sell or find no buyers. The supply is then above demand.
It is therefore important for investors to keep themselves informed about the price and to get relevant news for the crypto market to deal with. Currently, crypto trading is considered almost exclusively as a speculative investment, not as the means of payment, which it is likely to become - if not in the very near future. It is therefore necessary to protect yourself against losses as far as possible and to act carefully. If you buy large sums of Bitcoin and just want to leave it there for three years without worrying about it and seeing what happens later, you are taking a high risk.
There are now various ways of To participate in the boom. In addition to the direct purchase of the digital currency, traders will also find other trading options such as the new Bitcoin certificates or Bitcoin futures, which are traded on the stock exchange. These are derivatives and not real assets as in the purchase.
Benefit directly from the Bitcoin exchange rate development Bitcoin exchange rate dollar with futures & certificates
Only recently has Bitcoin financial products for private investors been available on the market. They also belong to the derivatives like the popular CFDs and are tradable as Bitcoin certificates and Bitcoin futures.
Investors need a<131 to trade certificates>Security deposit with a bank or an online broker. The certificates are also not a direct investment, but a derivative of Bitcoin, e.g. from Vontobel the Bitcoin Participation Certificate, which simulates the exchange rate performance of the cryptocurrency. Investors can invest in the Vontobel Open-End Participation Certificate with an unlimited term and therefore without a specified repayment date. Investors participate almost 1: 1 in price gains and losses against the US dollar.
If you want to trade the new Bitcoin futures, you should first consider both Look at their previous performance, parallel to the Bitcoin's price since its all-time high in December 2017 and the sharp price decline from the beginning of 2018. A trend reversal never seems to be impossible with Bitcoin. In the meantime, the price rose again in the other direction.
A securities account is also necessary for futures. Two regulated Chicago options and derivatives exchanges, the CBOE (ticker symbol XTB for Bitcoin Future) and CME (ticker symbol BTC), launched the futures contracts in mid-December 2017. They can be traded on a margin of 30% or 35%. Settlement is also in US dollars.
Trading in derivatives requires good knowledge and trading experience. These highly speculative types of trading are not suitable for beginners. You can speculate on rising or falling prices and are therefore not only dependent on a price increase, but this requires sufficient experience that you e.g. first acquire a risk-free demo version.
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