Why is Bitcoin the Most Traded Cryptocurrency of All? 

Bitcoin is, by far, the most traded cryptocurrency in the world, with billions of dollars’ worth of the token changing hands daily across the globe. Most of that volume can be ascribed to institutional traders, while a significant portion comes from the growing number of retailers in the market. Bitcoin’s high market capitalization entrenches it as the securest option in a sector that’s known for being, not just lucrative, but also unpredictable. As a result, the original crypto token continues to draw consistent interest from large institutions and modestly budgeted retailers alike. 

Bitcoin is the original cryptocurrency, which implies that: 

• It enjoys the highest level of trust and credibility of any token 
• Its brand recognition is unsurpassed in the crypto sector – just like Coca-Cola’s brand recognition assures its dominance in the beverage industry 
• It acts as a benchmark for the entire crypto sector, so that its price movements are broadly mirrored by the smaller tokens 
• Institutional interest is mainly directed towards Bitcoin 

Bitcoin is the most liquid cryptocurrency, meaning that: 

• Trading volume is consistently high, making Bitcoin trading efficient and economical for all types of market participants 
• Trading costs are low 
• Large institutions can trade Bitcoin without moving the price 

Why does Bitcoin receive the most media attention of any crypto? 

The token is highly visible to the public so that new market participants will tend to gravitate towards Bitcoin. Bitcoin is extremely sensitive to headlines, which act as catalysts for price action. This translates into greater earning opportunities in financial trading 

Also, social media hype can quickly snowball, moving Bitcoin prices sharply and substantially. 

Why does Bitcoin has the highest hash rate of any crypto? 

The computational power securing the Bitcoin blockchain is the strongest. Many institutions feel the token fits in with the narrative of “digital gold” – that Bitcoin may be a reliable store of value – which keeps them interested. Since rising hash rates suggest network health, they are viewed by traders as a bullish price signal. 

Conclusion

Bitcoin’s status as the original cryptocurrency makes it representative of the entire crypto sector in certain ways, inspiring the confidence of various kinds of traders. Bitcoin is constantly talked about by media outlets, reinforcing its visibility and dominant status.  

Frequently Asked Questions 

Why is Bitcoin better than any other cryptocurrency? 

In terms of functionality, it’s not inherently better than many other cryptocurrencies. In fact, some cryptos work better than Bitcoin in certain ways. Rather, Bitcoin’s market dominance can be ascribed to its first-mover advantage, which makes it more trustworthy in people’s minds. Bitcoin’s high hash rate does make its blockchain more secure against certain kinds of cyber-attacks, but this is not, generally speaking, a prominent draw factor in traders’ minds 

Why is Bitcoin the most valuable cryptocurrency? 

Crypto prices go up when demand exceeds supply. Because of the strong media narrative enveloping Bitcoin, people believe it’s the safest option out there for someone wanting to grow their money through crypto. Therefore, old-timers tend to hold onto their Bitcoins for longer, and newcomers feel it’s a wiser choice than the newer tokens. As a result of this, buying pressure often exceeds selling pressure, driving Bitcoin prices upwards. 

What is the main advantage of Bitcoin? 

Retail and institutional communities continue to believe in – and actively support – the Bitcoin blockchain more than any other network. The sheer breadth of these communities works to bolster the entire Bitcoin ecosystem. This is crucial because, in the sphere of Bitcoin trading, collective belief is a key driver of prices. Bitcoin does also function as a method of payment, but this use case is minor. 

What are the benefits of trading Bitcoin with iFOREX Europe? 

• When trading Bitcoin in CFD form with iFOREX Europe, you can open both “buy” and “sell” deals on the token. This makes it possible to earn from both upturns and downturns in the market.  
• In addition, you can customize your Bitcoin deal according to your preferences, for example with stop-loss orders to minimize risk.  
• You have the option to amplify your Bitcoin deals with leverage – a tool that increases both gains and losses 
• You can analyze Bitcoin price charts with technical analysis tools. This opens up a window to long- and short-term price trends that may prove vital to the success of your deal 
  
  
  Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.33% of retail investor accounts lose money when trading CFDs with this provider.  
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