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Trading Pair

A trading pair consists of two currencies or cryptocurrencies that you can trade for each other. It shows what you’re buying or selling and what you’re paying with.

Last updated • 2 min read
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What is a trading pair?

A trading pair is written as two abbreviations separated by a slash, for example, BTC/EUR. The currency or cryptocurrency on the left is called the base currency. The currency or cryptocurrency on the right is called the quote currency.

The price tells you how much of the currency on the right you need for one unit of the currency on the left. So, BTC/EUR shows how many euros one bitcoin costs.

You also use the same trading pair when selling bitcoin for euros. So, a trading pair doesn’t tell you by itself whether someone is buying or selling.

An example of a trading pair

Say you want to buy bitcoin with euros on a crypto exchange. You would look at BTC/EUR. If a price is listed, it tells you how many euros you pay for one bitcoin.

What if you later sell bitcoin for euros? You still use BTC/EUR, but you’re trading bitcoin for euros. This shows that the pair represents the relationship between the two.

Why are trading pairs important in crypto?

Trading pairs make it clear how the value of a cryptocurrency is measured. For example, ETH/BTC shows how much bitcoin one ether is worth. That’s different from the price of ether in euros.

So, when you read news about a price going up or down, it’s important to check which pair it refers to. If ETH/BTC rises, ether has become more valuable compared with bitcoin. That doesn’t automatically mean ether has also become more valuable in euros.

Liquidity is important too: it refers to how easily you can buy or sell without significantly affecting the price. With low liquidity, trading can be harder and costs can be higher.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.