$BTC A cryptocurrency pair is essentially a comparison of the prices of two crypto tokens. The most popular cryptocurrency pair is ETH/BTC. In this cryptocurrency trading pair, you can find how much one Ethereum token is worth in Bitcoin. In other words, trading pairs represent how much of one token you can purchase with a given amount of a different token.
Much like traditional currency trading, cryptocurrency exchanges rely on crypto trading pairs to illustrate each token’s value. When cryptocurrencies were first introduced as a financial alternative, there weren’t many trading pairs available. Most of the trades were tied to Bitcoin, as this is the major cryptocurrency token. Today, with the abundance of altcoins on the market, new trading pairs emerge by the hour.
Cryptocurrency trading pairs allow investors to make smart decisions about the transactions they want to accomplish through an exchange. As more pairs become available, traders have a larger variety of transactions they can perform. In order to successfully exchange one cryptocurrency token for another, you either need to find an exchange that supports that trading pair, or you will need to perform several transactions between different pairs in order to reach the final result you are looking for.
