#coinpair$BTC
š Coin pairs with BTC How do they work and why are they important?
If you trade crypto, you've surely seen tags like ETH/BTC, SOL/BTC, or ADA/BTC. But what do these coin pairs actually mean and why are BTC pairs especially important?
Letās clarify! š
šŖ What is a ātrading pairā?
A trading pair shows how much one cryptocurrency is worth in relation to another.
ā” For example, ETH/BTC means: āhow much Bitcoin is needed to buy 1 Ethereum.ā
š Why BTC as the primary currency?
Bitcoin ($BTC) is the first and most valuable cryptocurrency and is often used as the base currency when trading altcoins.
Many altcoins do not have a direct pair with fiat currencies ($, ā¬, RSD), but they do with BTC.
š What does it mean when an altcoin moves in a BTC pair?
⢠If ETH/BTC is rising, it means that Ethereum is gaining value relative to Bitcoin.
⢠If it is falling, then Bitcoin is strengthening against ETH, even if ETH is rising in dollars.
ā” Thatās why itās important to track both USD and BTC pairs, as they provide different market perspectives.
š” When to use BTC pairs?
ā When you want to assess the performance of an altcoin against BTC, rather than in fiat currency.
ā When trading within an exchange without needing to convert to USD.
ā When using BTC as the basis of your portfolio.
ā ļø What to pay attention to?
⢠The volatility of BTC directly affects all pairs.
⢠Liquidity: BTC pairs are usually more liquid than others.
⢠Technical analysis is useful, but it can differ for BTC and USD pairs of the same coin.