USDEUR in XBT - Spread Premium

FX traders take note: Crypto markets are spread from currency markets. Trade accordingly.


Over the weekend, when FX markets are stalled, crypto markets are vibrant. This means they have volatility across various currencies. From the chart above, the spread between USD/XBT and EUR/XBT is at 0.80. On the FX excanges, the UDS/EUR is trading at 0.85. That spread difference is HUGE.

If you are spreading USD/EUR using XBT, you will pay around 0.2% fees, but that covers the spread with profits. The spread against FX markets (0.80 vs 0.85) amounts to about $1000/bitcoin, which is well worth the $40 crypto currency trade fee.

This level of spread (higher USD price in XBT) may only exist for recent demand in Bitcoin Futures, so trade it soon.

If you are a holder of bitcoin and looking to cash out, selling in USD will provide you with a premium over Euro. Even if the funds wire costs $40, and the banks rape you at a 0.82 rate, you still make a better premium on the transaction than a straight euro trade. So, be aware of that when making your trades.


YOU ARE AN ADULT and must make your own decisions. ONLY YOU know what level of experience you possess. ONLY YOU know what level of risk you are willing to take. ONLY YOU know what your financial goals are, and to what lengths you are prepared to go to meet those goals. You will be the one to wear your losses, so trade with caution and do your own research.

Henry Ledyard is an independent trader. He has NO affiliations with banks, brokerages, funds, trading houses or markets. He trades for himself and posts trading ideas merely to share information. He does NOT want your money, advice or opinions. He does NOT want your unsolicited emails. If you require further financial advice, seek it elsewhere. Henry`s opinions should be considered as addled as his blog site: