BTC/Bitcoin and USD1: A Comprehensive Guide to Zero-Fee Trading on MEXC

Key Takeaways

• BTC is the largest cryptocurrency by market capitalization, while USD1 is a fiat-backed stablecoin issued by World Liberty Financial
• MEXC offers the BTC/USD1 trading pair with zero trading fees, with both Maker and Taker fees at 0%
• USD1 reserves are custodied by BitGo, issued on Ethereum and Binance Smart Chain, pegged 1:1 to the US dollar
• Members of the Trump family hold important positions at World Liberty Financial, promoting USD1's market expansion
• Users can participate in BTC and USD1 ecosystems through MEXC's various services, including spot trading and staking

1. Introduction to BTC and USD1

1.1 What is Bitcoin (BTC)?

Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. As a decentralized digital currency system, Bitcoin does not rely on any central authority for issuance or management. Bitcoin's total supply is capped at 21 million coins, and this scarcity is one of the key factors supporting its value.

As the market leader in cryptocurrencies, Bitcoin's price movements have significant impacts on the entire digital asset market. Investors often view Bitcoin as "digital gold," using it as a store of value and hedge against inflation. Bitcoin employs a Proof of Work (PoW) consensus mechanism, ensuring transaction security and transparency through blockchain technology.

1.2 What is USD1?

USD1 is a fiat-backed stablecoin launched by World Liberty Financial (WLFI) in April 2025. As an emerging stablecoin, USD1 aims to maintain a stable 1:1 exchange rate with the US dollar, providing a stable medium of value for digital asset trading.

USD1's reserves are custodied by BitGo, a California-based cryptocurrency custody service provider offering professional digital asset custody services to institutional investors. USD1 was initially issued on the Ethereum and Binance Smart Chain (BSC) networks, with plans to expand to more blockchain platforms in the future. This multi-chain deployment strategy aims to enhance USD1's accessibility and liquidity.

1.3 The Relationship Between BTC and USD1

Bitcoin and USD1 represent two different asset types within the cryptocurrency ecosystem. Bitcoin, as a volatile asset, has its price influenced by market supply and demand, macroeconomic factors, and various other elements. USD1, as a stablecoin, provides traders with a stable value benchmark.

In practical trading, investors can use USD1 as a medium for purchasing Bitcoin, or convert assets to USD1 during periods of high Bitcoin price volatility to preserve value. This combination provides investors with flexible asset allocation strategies, allowing them to capture Bitcoin's appreciation opportunities while using USD1 to hedge against short-term market volatility risks.

2. Advantages of Trading BTC/USD1 on MEXC

2.1 Zero Trading Fees

MEXC offers zero trading fees for the BTC/USD1 trading pair, which is one of MEXC's most competitive advantages. Whether as a Maker (limit order placer) or Taker (market order taker), traders do not need to pay any trading fees. This means:

• Lower Trading Costs: Frequent traders can save substantial amounts on trading fees
• Increased Profit Margins: Zero fees make small-spread arbitrage possible
• Suitable for Various Trading Strategies: Benefits both short-term trading and long-term investment

2.2 High Liquidity and Depth

As a leading global cryptocurrency exchange, MEXC provides ample liquidity for the BTC/USD1 trading pair. High liquidity ensures:

• Quick order execution with reduced slippage
• Narrower bid-ask spreads for better trading prices
• Smooth execution of large orders

2.3 Safe and Reliable Trading Environment

MEXC employs industry-leading security technologies to protect user assets:

• Multi-signature wallet technology
• Separation of cold and hot wallet storage
• Real-time risk monitoring systems
• Comprehensive KYC identity verification processes

3. BTC Price Analysis and Market Dynamics

3.1 Factors Affecting Bitcoin Price

Bitcoin price is influenced by multiple factors:

Supply-Side Factors: Bitcoin's total supply is fixed at 21 million coins, and the "halving" event occurring every four years reduces the rate of new Bitcoin production, thereby affecting market supply.

Demand-Side Factors: Participation from institutional investors, launch of Bitcoin ETFs, and sovereign nations adding Bitcoin to their reserves all significantly increase demand.

Macroeconomic Environment: Inflation, interest rate policies, and geopolitical risks affect investor demand for Bitcoin as a safe-haven asset.

Technological Development: Development of Layer 2 solutions like the Lightning Network and Bitcoin network technical upgrades all impact its long-term value.

3.2 Advantages of BTC to USD1 Conversion

Using USD1 as the pricing unit for Bitcoin trading offers multiple advantages:

Price Stability: USD1's peg to the US dollar eliminates price volatility risk from the stablecoin itself, allowing traders to more accurately track Bitcoin's true price movements.

Convenient Fund Management: Traders can quickly convert assets to USD1 during Bitcoin market fluctuations to avoid significant value loss, then re-enter the market when it stabilizes.

Trading Efficiency: Compared to direct fiat currency trading, using USD1 enables 24/7 all-day trading without waiting for banking hours.

4. World Liberty Financial and the Trump Family

4.1 World Liberty Financial Background

World Liberty Financial (WLFI) is a financial technology company headquartered in Miami, Florida, established in 2024. The company's founding marks the Trump family's formal entry into the cryptocurrency sector. The company's main business includes issuing stablecoins, providing digital asset trading services, and developing blockchain-based financial products.

World Liberty Financial's vision is to achieve "financial freedom" through blockchain technology, providing decentralized financial services to global users. This philosophy echoes the "America First" and economic nationalism that Donald Trump has consistently emphasized throughout his political career.

4.2 Trump Family Members' Participation

Multiple members of the Trump family hold important positions at World Liberty Financial, giving the USD1 project widespread attention from the start:

Eric Trump's Participation: Eric Trump is Executive Vice President of the Trump Organization, with extensive experience in family business management. He plays a key role at World Liberty Financial, participating in corporate strategic planning and business expansion. Eric Trump has expressed interest in cryptocurrency technology on multiple public occasions, believing that blockchain technology will reshape the financial industry.

Barron Trump's Role: As Trump's youngest son, Barron Trump is also listed as a "DeFi visionary" at World Liberty Financial. Although Barron is relatively low-profile, reports indicate he has a strong interest in cryptocurrency and blockchain technology. Some reports suggest that Barron Trump prompted his father and family members to understand and participate more deeply in the cryptocurrency sector.

Zach Witkoff's Importance: Zach Witkoff is one of World Liberty Financial's co-founders. The Witkoff family has close ties with the Trump family, with Zach's father Steve Witkoff being Trump's long-term business partner. Zach is responsible for technology and product development within the company, driving the implementation of cryptocurrency products like USD1.

4.3 Policy Environment and Regulatory Prospects

After Donald Trump's re-election as president, positive changes have occurred in US government cryptocurrency regulatory policies. A series of legislation favorable to stablecoin development, including the GENIUS Act, has been promoted, creating a more friendly regulatory environment for emerging stablecoins like USD1.

5. USD1's Operating Mechanism

5.1 Issuance and Redemption Process

USD1 adopts the typical fiat-backed stablecoin model, with the following specific operational process:

Issuance Process: When users wish to obtain USD1, they need to deposit equivalent US dollars to World Liberty Financial. These dollars are transferred to reserve accounts custodied by BitGo. After completing the deposit, the corresponding amount of USD1 tokens is minted and transferred to the user's digital wallet. The entire process is automatically executed through smart contracts, ensuring transparency and efficiency.

Redemption Process: When users wish to convert USD1 back to US dollars, they can submit a redemption request to World Liberty Financial. The system will burn the corresponding amount of USD1 tokens and release equivalent US dollars from the reserve account to return to the user. The redemption process typically requires a certain processing time, depending on bank transfer speed and KYC verification requirements.

This mechanism ensures that USD1's supply always matches the reserves. In theory, if all USD1 holders simultaneously request redemption, World Liberty Financial should have sufficient US dollar reserves to meet all redemption needs.

5.2 Reserve Management

According to World Liberty Financial's official statement, USD1's reserve assets primarily include:

Cash and Cash Equivalents: Most reserves are held in the form of bank deposits or money market funds, ensuring high liquidity and security.

Short-term US Treasury Securities: Part of the reserves is invested in short-term US Treasury securities, which are considered among the world's safest investments while generating certain yields.

Other High-Grade Bonds: A small portion of reserves may be invested in other high credit-rated bond products to optimize the balance between yield and liquidity.

This conservative asset allocation strategy aims to minimize reserve risk while maintaining sufficient liquidity to meet redemption needs. In contrast, some stablecoin projects have encountered difficulties due to excessive investment in risky assets or poor liquidity management.

6. USD1's Position in the Cryptocurrency Market

6.1 Stablecoin Market Landscape

The current stablecoin market is dominated by several major projects. USDT is the stablecoin with the largest market share, issued by Tether, with circulation exceeding hundreds of billions of dollars. USDC, issued by Circle, is the second-largest stablecoin, known for its compliance and transparency. There are also decentralized stablecoins like USDS issued by MakerDAO.

USD1's entry into this highly competitive market faces both challenges and opportunities:

Brand Advantage: The Trump family's fame can quickly raise USD1's market awareness, attracting supporters and cryptocurrency enthusiasts.

Policy Support: With Trump serving as president again, the US cryptocurrency policy environment may become more friendly, creating favorable conditions for USD1's development.

Market Demand: As the cryptocurrency market continues to grow, demand for stablecoins is also increasing. Diversified stablecoin options help spread risk and promote market competition.

6.2 Comparison of USD1 with Other Stablecoins

USD1 vs USDT: USDT's greatest advantage lies in its massive market scale and broad exchange support. Almost all cryptocurrency exchanges support USDT trading pairs, with extremely high liquidity. However, Tether's transparency has been questioned multiple times. In contrast, USD1 as a new project emphasizes transparency more but needs time to establish its market position.

USD1 vs USDC: USDC is known for compliance and regular audits, subject to strict supervision by the US Commodity Futures Trading Commission. USDC's reserves are primarily held in cash and short-term US Treasury securities, similar to USD1. The main difference lies in brand and management team background.

USD1 vs DAI: DAI is a decentralized stablecoin that maintains value through over-collateralization of crypto assets. This mechanism doesn't rely on centralized entities but is more complex and affected by crypto market volatility. USD1's fiat-backed model is simpler and more direct but requires trust in the centralized management team.

6.3 USD1 Application Scenarios

USD1 can play a role in multiple scenarios:

Cryptocurrency Trading: As a base currency for trading pairs, users can purchase other cryptocurrencies using USD1. Exchanges like MEXC have already listed the USD1/USDT trading pair for convenient user trading.

DeFi Applications: USD1 can be integrated into various DeFi protocols, including lending platforms like Aave and Compound, as well as decentralized exchanges like Curve Finance. Users can use USD1 for lending, providing liquidity, or participating in yield farming.

Cross-border Payments: Stablecoins can serve as efficient cross-border payment tools, and USD1's multi-chain deployment enables fast transfers between different regions.

Value Storage: When cryptocurrency market volatility is high, investors can convert funds to stablecoins like USD1 to preserve value.

Commercial Applications: Merchants accepting cryptocurrency payments can use USD1 as a settlement currency to avoid price volatility risks.

7. How to Participate in BTC and USD1 Ecosystem on MEXC

7.1 Buying USD1

Buying USD1 on MEXC is very simple. For detailed steps, please refer to How to Buy USD1 on MEXC:

Step 1: Register a MEXC Account: Visit the MEXC official website and complete registration and identity verification as required.

Step 2: Deposit Funds: Deposit funds into your MEXC account through bank transfer, credit card, or other cryptocurrencies.

Step 3: Trade USD1: Search for USD1 on the trading page, select a trading pair (such as USD1/USDT), enter the purchase amount and confirm the transaction.

Step 4: Withdraw USD1: After purchase, you can withdraw USD1 to your own digital wallet or continue holding it in your exchange account.

7.2 Trading BTC/USD1

Enjoy zero trading fee advantages when trading BTC/USD1 on MEXC:

Spot Trading: Users can directly buy or sell Bitcoin using USD1 as the pricing unit. The zero-fee policy significantly reduces frequent trading costs.

Limit Orders and Market Orders: Investors can choose limit orders (buy/sell at specified prices) or market orders (immediately execute at current market price) based on market conditions.

Trading Strategies: Zero fees are particularly suitable for high-frequency trading strategies, grid trading, and arbitrage trading.

7.3 Participating in USD1 Staking Activities

MEXC has launched a USD1 staking activity where users can stake USD1 to earn World Liberty Financial token (WLFI) rewards. Activity details:

Activity Content: Stake USD1 on MEXC to share 15 million WLFI

Participation Method:

1. Hold USD1 in your MEXC account
2. Visit the Launchpool activity page
3. Select the USD1 staking pool and confirm the staking amount
4. Daily snapshots during the activity period, with WLFI rewards distributed based on staking amount

Reward Mechanism: The more USD1 staked, the higher the proportion of WLFI rewards received. The staked USD1 remains owned by the user during the activity and can be withdrawn at any time.

Important Notes:

• Please carefully read the activity rules to understand staking periods and withdrawal restrictions
• WLFI token value may fluctuate; please assess risks before participating
• Activities may be adjusted or ended at any time; official announcements shall prevail

By participating in staking activities, users can not only earn additional returns but also gain deeper understanding of the USD1 and World Liberty Financial ecosystem.

7.4 USD1 Storage and Security

Pay attention to security when holding USD1:

Wallet Selection: USD1 can be stored in various wallets supporting Ethereum or BSC, including hot wallets like MetaMask and Trust Wallet, as well as hardware wallets like Ledger and Trezor.

Private Key Management: Properly keep your wallet private keys or recovery phrases and never disclose them to others. Losing private keys means permanently losing asset access.

Exchange Security: If storing USD1 on exchanges like MEXC, enable security features such as two-factor authentication (2FA) and change passwords regularly.

Small Amount Testing: Before making large transfers, send a small amount of USD1 for testing, then proceed with formal transfers after confirming the address is correct.

Fraud Prevention: Be wary of phishing websites and fraudulent messages; always access World Liberty Financial and MEXC platforms through official channels.

8. Frequently Asked Questions

1. What is the BTC/USD1 trading pair, and how does it differ from BTC/USDT?

BTC/USD1 is a Bitcoin trading pair with USD1 stablecoin as the pricing unit. Similar to BTC/USDT, both use stablecoins to trade Bitcoin. The main difference is that USD1 is an emerging stablecoin issued by World Liberty Financial, while USDT is the most widely circulated stablecoin in the market. On MEXC, the BTC/USD1 trading pair enjoys zero-fee advantages, with both Maker and Taker fees at 0%.

2. Why is trading BTC/USD1 on MEXC zero-fee?

MEXC offers zero fees for the BTC/USD1 trading pair to support liquidity and market acceptance of USD1, an emerging stablecoin. This means whether you place a limit order (Maker) or market order (Taker), you don't need to pay any trading fees. This policy significantly reduces trading costs, particularly suitable for frequent traders.

3. Who custodies USD1's reserves and how is security ensured?

USD1's reserves are custodied by BitGo. BitGo is a leading California-based cryptocurrency custody service provider offering professional services including multi-signature wallets and cold storage solutions to institutional clients. To ensure security, USD1 reserves employ multi-layered protection: physically isolated cold wallets store most funds, multi-signature mechanisms prevent single points of failure, regular security audits and penetration testing, and insurance coverage for custodied assets. World Liberty Financial commits to regularly publishing reserve audit reports to ensure transparency.

4. How do I convert BTC to USD1 on MEXC?

Converting BTC to USD1 on MEXC is simple: First, log into your MEXC account, visit the BTC/USD1 trading pair page, select "Sell" BTC, enter the amount of BTC you want to sell, the system will automatically calculate the USD1 amount you'll receive, confirm transaction details and submit the order. Since MEXC offers zero-fee service, you won't incur any transaction fees.

5. What advantages does USD1 have compared to other stablecoins (like USDT, USDC)?

USD1's main advantages include: The Trump family's brand influence can quickly raise awareness, multi-chain deployment strategy improves accessibility, and the current US policy environment is favorable for project development. USD1 adopts a fiat reserve mechanism similar to USDC, emphasizing transparency and compliance. Main disadvantages include lack of market validation and user trust as a new project, lower liquidity than mature stablecoins like USDT and USDC, and limited support from exchanges and DeFi protocols.

6. What risks are involved in participating in MEXC's USD1 staking activities?

Participating in staking activities involves the following risks: WLFI token value may fluctuate, leading to uncertain actual returns; although staked USD1 can be withdrawn at any time, withdrawal delays may occur in some cases; if USD1's price deviates from the $1 peg, it may affect your asset value; activity rules may be adjusted at any time. It's recommended to carefully read activity terms before participating, assess your risk tolerance, and don't invest more than you can afford to lose.

7. BTC price is highly volatile, what are the benefits of using USD1 for trading?

Benefits of using USD1 to trade Bitcoin include: USD1's 1:1 peg to the US dollar provides a stable pricing benchmark, allowing you to track BTC's true price movements more clearly; when the market is highly volatile, you can quickly convert BTC to USD1 to preserve value and avoid significant asset shrinkage; compared to fiat trading, USD1 supports 24/7 all-day trading without waiting for banking hours; trading BTC/USD1 on MEXC enjoys zero fees, further reducing trading costs.

8. If I encounter USD1-related issues, how should I seek help?

If you encounter any issues when using USD1, you can seek help through the following channels: For trading-related issues, please contact MEXC Customer Service, providing 24/7 multilingual customer support; for questions about the USD1 project itself, please visit the World Liberty Financial official website to view FAQs or contact customer service. Additionally, you can download the MEXC mobile app to manage your USD1 assets anytime, anywhere and receive real-time support.

9. What blockchain networks will USD1 support in the future?

USD1 is currently issued on Ethereum and Binance Smart Chain (BSC). According to World Liberty Financial's plans, it will expand to more mainstream blockchain networks in the future. Possible candidates include Polygon, Arbitrum, Optimism and other ETH Layer 2 networks, as well as other public chains like Solana and Avalanche. Multi-chain deployment can improve USD1's accessibility, reduce transaction costs, and enable integration into more DeFi protocols.

10. What potential returns can I earn from holding USD1?

As a stablecoin, USD1 is designed to maintain a 1:1 peg with the US dollar, so holding USD1 won't generate price appreciation returns. However, users can earn returns through the following methods: participating in staking activities on platforms like MEXC to earn WLFI or other token rewards; providing USD1 liquidity in DeFi protocols to earn transaction fees; using USD1 for lending to earn interest income; arbitraging when USD1 price temporarily deviates from the peg. Additionally, holding USD1 can protect asset value during crypto market volatility, avoiding losses from price declines in other cryptocurrencies.