How to use Bitcoin dominance to trade cryptocurrencies By displaying the market's trading volume in Bitcoin versus altcoins, Bitcoin dominance can have a direct impact on altcoins.

When it comes to trading volume and market capitalization, Bitcoin (BTC tickers down $19,285) is both the first and most well-known cryptocurrency in the world. Given that all cryptocurrencies trade against Bitcoin and that Bitcoin's dominance can actually be a useful indicator when trading all cryptocurrencies, these factors are quite significant. Learn how to read the Bitcoin dominance index chart as a whole and how to trade cryptocurrency using the Bitcoin dominance indicator in this post. What is the chart of BTC dominance? Comparing Bitcoin's market capitalization to that of the entire crypto market reveals the dominance of Bitcoin. We know the answer to the question: the greater Bitcoin's market capitalization, the more dominant Bitcoin is. How much of the cryptocurrency market is Bitcoin? These figures are displayed in a simple percentage format on the BTC dominance TradingView chart, allowing one to quickly determine whether BTC dominance is 40 percent or 60 percent, for instance. However, the Real Bitcoin Dominance Index, which only measures BTC dominance against proof-of-work (PoW) coins aiming to become a form of currency, is also available to users. The Real Bitcoin Dominance Index is based on the idea that many altcoins, such as stablecoins, are not trying to compete with Bitcoin. As a result, it may provide a longer-term perspective on Bitcoin's dominance that is more realistic. Since it is debatable whether or not Ether (ETH tickers down $1,346) is intended to be a currency rather than a utility token, this indicator even gives users the option to exclude Ethereum.