Crypto Trading Pairs: Exchanging Digital Assets
Pair is a trade between one cryptocurrency and another, such as the BTC/ETH trading pair.
What is Pair?
A trading pair is a combination of two cryptocurrencies to facilitate trading on a digital currency exchange. Often referred to as a trading pair, it shows which cryptocurrencies can be exchanged during a trade. A dash (-) or slash (/) indicates a pair, separating the two coins. For example, BTC/ETH denotes a pair of Bitcoin (BTC) and Ethereum (ETH). When interacting with this pair, a trader can buy BTC for ETH or sell Bitcoin to get ETH.
In the above example, BTC is the base currency and ETH is the quote currency. On exchanges, a pair denotes how much of the quote currency is needed to buy a full unit of the base cryptocurrency. In most cryptocurrency exchanges, the base currencies in trading pairs are Bitcoin, Ethereum and Tether (USDT).
When choosing a trading pair, it is influenced by many factors. Among them, the key ones are whether the preferred exchange has a listing for the pair and whether the pair has sufficient liquidity. Keep in mind that selecting a trading pair with low liquidity or low trading volume may take time to execute an order or the order may not be executed at all.