A trading pair describes the trading possibility between two currencies. Whenever you find pair section in exchanges and see text like ETH/BTC, this means that you can use Ethereum to buy or sell Bitcoins.
What’s the benefit of using Trading pairs?
- Cryptocurrency trading pairs make it easy to trade within the cryptocurrency ecosystem and prevent you from going out of the system to use fiat to trade.
- Sometimes the buying power of fiat may be less than crypto. For example, in a XMR/BTC pair, if the value of BTC goes up 20% and the fiat value of XMR remains the same. This means that you can buy 20% more Moneros by using Bitcoin compared to Fiat.
- Some cryptocurrencies can only be bought by using cryptocurrencies and cannot be bought directly by using fiat.
Below you can find an example of an Ethereum (ETH) and Bitcoin (BTC) trading pair.
Example of Trading Pair ETH/BTC