📊 Bitcoin Pairs & Arbitrage Trading on Binance
What Are Bitcoin Pairs?
Bitcoin pairs (BTC pairs) refer to cryptocurrency assets traded against Bitcoin, such as ETH/BTC, BNB/BTC, or SOL/BTC. On Binance, BTC pairs are widely used because Bitcoin is the most liquid and dominant base asset in the crypto ecosystem.
Trading in BTC pairs allows you to measure the strength of altcoins against Bitcoin, rather than just against USD or stablecoins. For example, if ETH/BTC rises, it means ETH is strengthening against BTC.
Arbitrage Trading on Binance
Arbitrage is a strategy of buying cryptocurrency in one market and selling it in another to profit from the price difference.
Example of arbitrage on Binance:
Buy ETH in the ETH/USDT pair
Sell ETH in the ETH/BTC pair
Convert BTC back to USDT through BTC/USDT
If there is a significant price difference between pairs, you can achieve profits with almost no risk, although these opportunities are very quick and competitive.
Binance, as one of the largest exchanges with high liquidity, is an ideal place for BTC pair-based arbitrage strategies.
