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Trade Oil with Bitcoin. Table of Contents
- Trade BRENT and WTI Crude Oil with Bitcoin
- Why invest in Oil with Cryptocurrency?
- Type of Oils you can trade with Cryptocurrency
- Price Factors of Oil Markets
- How to start trading Oil with Cryptocurrency?
Trade BRENT and WTI Crude Oil with Bitcoin
Oil is the lifeblood of developed countries and has become the world’s most important source of energy since the mid-1950s.
The company’s products support the modern world, primarily fueling the power industry, home heating, cars and airplanes, fueling the transportation of goods and people around the world.
Oil is also one of the most popular trade commodities.
Markets due to fluctuations in prices due to supply and global economic factors.
The award-winning PrimeXBT platform offers a wide range of trading tools and strategies to successfully trade in the oil market.
Access the Brent and Crude Oil markets with PrimeXBT and take advantage of rising and falling prices with a variety of advanced trading tools.
Why invest in Oil with Cryptocurrency?
Crude oil is an unrefined tan, oily product composed of hydrocarbon deposits and other organic matter is a fossil fuel and is traded as a commodity in financial markets.
Crude oil is used to make petroleum and several fuel by-products.
As a commodity, its price fluctuates greatly depending on the environment, weather, geopolitical and economic factors, etc, making it a perfect asset for profitable trades.
PrimeXBT trades both BRENT oil and WTI crude oil for the USD trading pair.
Too many factors can affect oil prices and the prices of Brent and WTI crude oils can fluctuate significantly, making it a perfect asset to trade with leverage.
If oil prices fall, opening a short position can keep your profits growing despite the market decline.
If oil prices rise, long trading can also lead to profits.
Type of Oils you can trade with Cryptocurrency
There are two types of crude oil that can be traded on PrimeXBT. The main differences are as follows:
1. BRENT crude oil
BRENT Oil is the leading benchmark for crude oil in the Atlantic basin, representing the price of 2/3 of the global crude oil market.
BRENT crude oil is derived from the North Sea, contains more sulfur and is less light and sweeter than WTI crude oil.
Brent oil is the most preferred oil in the European market.
2. WTI crude oil
WTI Crude Oil, or Crude Oil under the West Texas Intermediate stock name, is a light and sweet crude oil used as a benchmark for pricing oil prices.
WTI crude oil is lighter, sweeter and has less sulfur than Brent oil.
WTI crude oil is primarily refined in the Midwest and Gulf Coast regions of the United States and is the preferred type of oil in North America.
Price Factors of Oil Markets
Brent oil and WTI crude oil are both raw materials and essential energy resources, and supply and demand can be influenced by many factors, affecting prices and causing prices to rise or fall.
What drives crude oil prices? The prices of Brent and WTI crude oil are driven by OPEC, supply, global economic data, US dollar prices, alternative power development, prices of alternative fuel sources, and various political factors.
OPEC stands for Organization of the Petroleum Exporting States.
The organization is made up of 14 major oil-producing countries that supply most of the world.
When suppliers buy oil, they usually purchase oil from OPEC countries.
OPEC regulates oil supply, which can affect oil prices.
2. Stored reserves
Crude oil is stored for later use or for times when supply cannot keep up with demand.
Often, when reserves are depleted or an accident occurs at a facility, the stored reserves are lost, which can affect oil prices.
3. Global economic data
Different types of global economic data, such as data related to tariffs, debt and unemployment, can affect oil prices, such as: The most important and critical energy source, oil and its supply, can affect many other industries that use it as a resource.
4. Oil price corresponding to USD price
The value of the U.S. dollar can have a dramatic impact on oil prices through USD trading pairs.
As with any asset paired against the US dollar, its value and strength can affect other assets paired.
USD is the most common currency paired with oil and other commodities.
5. Alternative power development
As technology advances and the need for clean exhaust with less environmental impact becomes more common, this can have a dramatic impact on oil prices.
6. Alternative energy prices
The development of these new energies not only affects oil prices, but the electricity prices of these new energies can have a negative impact.
As the prices of these new energy classes fall, fewer countries are buying the stock of crude oil, so supply will outpace demand.
7. Political factor
Political factors such as wars and trade tensions can have a huge impact on oil prices, especially if one of the OPEC countries is involved.
These countries can affect oil prices around the world, and oil is often used for barter purposes.
How to start trading Oil with Cryptocurrency?
PrimeXBT’s oil trading requires very little starting capital.
The minimum deposit starts at 0.001 BTC and starts trading oil using CFDs with leverage.
CRUDE and NAT.GAS take an hour break for 23 hours a day from Sunday to Friday.
Petroleum: BRENT takes a 3-hour break for 21 hours a day from Sunday to Friday.
At any time during this time, traders can take a position or liquidate in the WTI Crude Oil, NAT.GAS or Brent Petroleum markets.
Oil investment is difficult because of the storage cost per barrel.
For those looking to participate in the oil and commodity markets, oil trading is a better option.