#TradingPairs101 take full advantage of crypto trading pairs, you need to understand base currencies. A base currency is a way to denote an agreed-upon value of different assets. Base currencies are a common tool for comparing exchange rates across fiat currencies in different countries. An American traveling to Italy will want to convert USD into the Italian currency, the Euro. In this case, the USD serves as the base currency. The same principles apply to crypto assets.

If you’re seeking a lesser-known crypto on an exchange, you’ll likely need to own one of the base currencies listed in a pair before you can trade. In most cases, the most popular cryptocurrencies (BTC, ETH) serve as base currencies, but accepted base currencies will vary for each exchange. Before diving into trading pairs, investors should confirm which base currencies are accepted at their exchange