What Are Crypto Trading Pairs? How Do You Choose Them?

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Oct 6, 2020

For new investors, navigating the world of cryptocurrency can be a difficult task. There's a lot to understand before you can start trading these unpredictable financial vehicles, both in terms of exchanging and safely storing them.

Trading pairs is going to be one of your initial concerns. Even if you've previously invested in other assets, such as stocks, you might not be familiar with this because such securities were most likely traded against your local government's currency.

In most cases, cryptocurrencies do not trade against fiat currencies, though some choices are emerging presently. Instead, you'll be trading against another cryptocurrency's worth. These combinations aid in determining the value of your coins. Typically, an exchange will provide various pairings, and you may choose which ones to use based on the currencies you already hold.

Bitcoin is by far the most popular trading pair, with the majority of coins' volume concentrated here. However, Ethereum and Litecoin are two more popular options.

Even Dogecoin has a role as a trading pair, and it's frequently used for low-market-cap coins that would be difficult to exchange with something like Bitcoin. Doge is also preferred by certain investors because its value is typically constant, making it a good location to keep discounts.

A pairing is essentially a starting point from which you can trade other coins or tokens. To change in one of these markets, you'll need to own the base currency in order to buy new currencies. This is how much your acquired asset has gained in value against Bitcoin's price when you see a pretty little green blip on the chart for a Bitcoin pairing.

If you've ever seen an investment that was worth more the next day but didn't seem to show up the next day, it's most likely because both Bitcoin and the asset in question climbed against the USD, boosting their value without revealing it.

What are Crypto Trading Pairs?

Crypto trading pairs are a component of a cryptocurrency transaction ...

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