Pair

What Is a Pair?

A pair is a combination of two cryptocurrencies used for trading on a digital currency exchange. It is commonly referred to as a trading pair and indicates which cryptocurrencies can be exchanged during a trade. The pair is represented by a dash (—) or a slash (/) that separates the two coins. For example, BTC/ETH represents a pair consisting of Bitcoin (BTC) and Ethereum (ETH). By interacting with this pair, a trader can either buy BTC with ETH or sell Bitcoin to acquire ETH.

In addition to crypto-to-crypto pairs, exchanges that support fiat currencies can also have fiat/crypto pairs. However, the basic principles of trading remain the same. In a pair, the first currency is referred to as the base currency, while the second currency is the quote currency.

Using our previous example, BTC is the base currency and ETH is the quote currency. On an exchange, a pair specifies the amount of quote currency required to purchase a full unit of the base cryptocurrency. Bitcoin, Ethereum, and Tether (USDT) are typically the base currencies in most trading pairs on cryptocurrency exchanges.

When choosing a trading pair, there are several factors to consider. These include whether the preferred exchange has listed the pair and whether the pair has sufficient liquidity. It is important to note that selecting a trading pair with low liquidity or trading volume may result in delays in filling the order or the order not being filled at all.