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 addition to crypto/crypto pairs, exchanges that support fiat currencies can have fiat/crypto pairs. The basics of trading remain the same. In pairs, the first currency is called the base currency and the second currency is called the quote currency.

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.

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