#TradingPairs101 Cryptocurrencies have become a popular choice for investors looking to diversify their portfolios. One aspect of cryptocurrency trading that can confuse newcomers is the concept of trading pairs. In this article, we will explain what trading pairs exist in cryptocurrency and how they work.

A trading pair in cryptocurrency is two currencies that can be bought and sold against each other on an exchange. For example, the trading pair BTC/USD means that Bitcoin can be bought or sold for US dollars. Similarly, the trading pair ETH/BTC means that Ethereum can be bought or sold using bitcoins.

Trading pairs are important in cryptocurrency trading as they allow investors to compare the value of one cryptocurrency to another. For instance, if an investor is interested in buying Ethereum and sees that the trading pair ETH/BTC has a higher value than the trading pair BTC/USD, they may decide to buy Ethereum using bitcoins instead of US dollars.

It is worth noting that not all cryptocurrencies can be traded against all other cryptocurrencies. Trading pairs are defined by the exchange and may vary depending on the platform.