A cryptocurrency pair is a trade between two digital currencies on an exchange platform, where the value of one is determined in relation to the other. For example, the BTC/ETH pair reflects the price of Bitcoin against Ethereum. These pairs allow investors and speculators to capitalize on price movements between different cryptocurrencies without the need to convert to traditional cash. Liquidity and volatility vary among pairs, with major pairs like BTC/USDT enjoying high liquidity, while rare pairs may be more volatile. The choice of the appropriate pair depends on trading strategies, such as technical and fundamental analysis, along with an understanding of market influences and economic factors affecting digital currency prices.
