What Are Cryptocurrency Pairs?
Cryptocurrency pairs are two different digital currencies that can be traded against each other. For example, Bitcoin (BTC) and Ethereum (ETH) are two of the most popular cryptocurrencies in the world, so they form a cryptocurrency pair. When trading these pairs, traders will buy one currency while simultaneously selling another. This allows them to take advantage of price movements between the two assets and make profits from their trades.
Trading cryptocurrency pairs is similar to traditional forex trading but with some key differences. Unlike forex markets which have fixed spreads, crypto markets tend to have more volatile spreads due to their decentralized nature and lack of liquidity providers. Additionally, there is no central authority or government intervention when it comes to setting prices for crypto pairs as all transactions occur on peer-to-peer networks like blockchain technology. As such, traders must be aware of market conditions before entering into any trade involving cryptocurrency pairs in order to maximize their chances for success.