#TradingPairs101
Trading pairs allow you to trade one asset for another on an exchange. In cryptocurrency, pairs like BTC/LTC or ETH/BCH enable traders to exchange assets. This concept is crucial for buying certain crypto currencies and exploiting arbitrage opportunities.
How Trading Pairs Work:
- Compare costs between assets
- Illustrate relative worth of specific assets
- Offer pairing options based on currencies you possess
Types of Trading Pairs:
- Cryptocurrency Pairs: BTC, ETH, and other popular crypto currencies serve as base currencies
- Fiat Pairs: Paired with currencies like USD
Benefits:
- Expand crypto holdings
- Profit from price differences between markets
- Hedge sector and market risk with strategies like pairs trading$BTC $XRP $LTC