Cryptocurrency Pairs

As the name suggests, Cryptocurrency pairs are the pairing of two cryptocurrencies to compare their prices. The comparison allows the traders to observe the exchange prices of cryptocurrencies.

Traditional vs. Decentralized pairs

Similar to the cryptocurrency pairs, there are pairings in the traditional currencies. For example, Dolar/Euro is one of the famous pairings to observe the relationship between these two most common currencies. In the crypto world, the most popular cryptocurrency pair is Bitcoin (BTC) and Ethereum (ETH), which are the two of the biggest cryptocurrencies.

Functions of Cryptocurrency Pairs

The pairings of two coins will give information about their price relationship. Also, there are other pairings of the currencies that compare traditional currencies with cryptocurrencies. These pairings provide direct information about the coin’s value in physical money.

Other than observing the prices between two coins. One of the essential functions of cryptocurrency pairs is exchange transactions. A trader only can exchange in the trading market if there is a cryptocurrency pair. However, it is possible to exchange the two coins even though no pair existed. Especially for the local currencies, it may be needed to purchase popular coins to convert them to the desired coin.

How to convert your coin to the not paired currency?

First, the trader should convert the cryptocurrency to a common part of the cryptocurrency pair. For example, hypothetically, if there is no pairing of Ethereum and Bitcoin, but there is a pairing of Binance Coin (BNB) in both of them, and the trader only has Bitcoin, the trader should convert their ETH to the BNB,

Second, the trader can now purchase the Bitcoin with the Binance Coin, which was previously converted from ETH. Of course, these are the most popular coins; it would not be necessary to convert them to one of them to get the other.