$BTC

Understanding Coin Pair Trading with BTC

Trading coin pairs with BTC means you’re using Bitcoin as the base currency to trade against other cryptocurrencies. Instead of trading with USD or another fiat currency, you’re buying or selling altcoins in terms of their value relative to Bitcoin.

For example, if you’re trading the ETH/BTC pair, you’re looking at how much Bitcoin one Ethereum is worth. If you believe ETH will perform better than BTC in the short term, you might buy ETH using BTC. Later, if the ETH/BTC price rises, you can sell your ETH for more BTC, making a profit.

Pair trading with BTC is popular among crypto traders who want to grow their Bitcoin holdings without converting to cash. It also helps in spotting strong-performing altcoins during different market phases.

It takes some practice to read the charts and understand how BTC movements affect altcoin prices, but it can be a powerful strategy once mastered.