Trading BTC to SEK
The BTC/SEK pair may be interesting for traders. It is widely believed that the Swedish krona is undervalued. This is due to certain economic activities and the surrounding monetary policy with anticipation that its volatility may increase in the future.
The Bitcoin to SEK pair can be profitable for different types of traders because of the way the BTC to SEK exchange rate moves. BTC/SEK value is marked with higher volatility during some periods while it has lower volatility in others depending on the performance of the current economic indicators.
BTC to SEK may also exhibit a range-bound movement or have a defined trend direction lasting for a couple of days, weeks or even months. Hence, there are numerous opportunities for trading Bitcoin to Swedish Krona on lower and higher time frames. Another interesting aspect of the BTC to SEK is that there might not be a similar movement between different time frames. For instance, while there could be an upward trend on the daily chart, the pair might move in a downward line on a weekly or monthly chart.
What is Bitcoin?
Since its introduction in 2008, the Bitcoin had a significant impact on the financial markets and on trading. Despite the scepticism related to BTC in the early years, it is now one of the most actively traded cryptocurrencies in the world. Bitcoin is a base or quoted currency in tens of currency pairs with a daily trading volume reaching tens of billions of pounds.
Here are some interesting facts about the BTC
- At the beginning of 2010 the Bitcoin price was only $0.003, so with $1 you were able to buy more than 300 Bitcoins. Today $1 can be used to cover only a portion of your trading fees because BTC has appreciated substantially since then.
- Although the name Satoshi Nakamoto is associated with the invention of Bitcoin, in reality, the creator (or creators) of Bitcoin is unknown.
- Losing your crypto wallet private key most likely means that you can no longer access your Bitcoins, they are lost for ever. So, find a safe way to keep your private key.
- The Bitcoin supply is limited to 21 million coins.
- In some stores, you can use Bitcoins to buy food and drinks, video games, flights and even property directly.
- The real-world transaction in Bitcoin was made in 2010 when Laszlo Hanyecz paid 10,000 BTC for two pizzas which were worth only $30. Later on, 10,000 Bitcoins were worth tens of millions of dollars.
Which factors affect Bitcoin’s value?
The supply and demand for Bitcoins have a major influence on its price. The cost for mining Bitcoins also affects the value of BTC in a way that higher costs would imply that BTC value should increase or mining would be unprofitable. The number and strength of competitive cryptocurrencies and the number of currency exchanges which quote the BTC can positively or negatively impact the BTC value. Moreover, different regulations and legal issues can affect the value as evident in the past.
What is Swedish krona (SEK)?
Swedish krona is among the top traded currencies in the world and it is the monetary unit of Sweden. The krona was introduced as an official currency in Sweden with the formation of the Scandinavian Monetary Union in 1873. It is issued by the Swedish Central Bank or Sveriges Riksbank which also has the responsibility to maintain the stability of the official currency.
Which factors affect SEK’s value?
Different factors can affect the value of SEK and the BTC to SEK exchange rate. One is the country’s monetary policy which maintains some of the lowest interest rates (at times even negative interest rates). It is stated that the undervaluation of the Swedish krona comes from the monetary policy and, as an undervalued currency, it can offer profitable trades in the future if the policy changes.
Furthermore, Sweden is characterised as a small and open economy where trade is a crucial component in the economic development and changes in international trade levels can impact the SEK value. Thus, watch events such as the US/China trade war because they may have an adverse effect on international trade.
Moreover, it should be noted that the SEK movement is correlated with the movement of the NOK (Norwegian krone) and Danish krone (DKK). Hence, traders should monitor the movement in these currencies as they could potentially provide an insight into the BTC/SEK movements.
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