What are "Bitcoin Currency Pairs"?

In the trading world, currencies are not bought or sold individually. Instead, they are always traded in pairs. When you buy Bitcoin (BTC), you are buying it against another currency. This second currency can be a traditional fiat currency (such as the US dollar) or another digital currency. This configuration is what we refer to as a "currency pair."

Common examples of Bitcoin currency pairs:

* BTC/USD (Bitcoin against the US dollar): This is the most famous and liquid pair. It refers to the price of one Bitcoin quoted in US dollars. For example, if the price is $60,000, it means that 1 Bitcoin is equivalent to $60,000.

* BTC/USDT (Bitcoin against Tether): Tether (USDT) is a stable digital currency whose value is pegged to the US dollar. This pair is very popular among traders in the cryptocurrency market because it allows them to trade between Bitcoin and a stable currency without having to deal directly with traditional banks.

* BTC/ETH (Bitcoin against Ethereum): This pair represents the trading of two leading digital currencies. It shows how much Ethereum you need to buy one Bitcoin, or vice versa.

Why are currency pairs essential?

* Value determination: Currency pairs are the way we determine the value of Bitcoin relative to another currency.