What Is a Pair?
In order to make trading on a cryptocurrency exchange easier, two coins are combined to form a pair. It displays the cryptocurrencies that can be traded during a transaction and is frequently referred to as a trading pair. A pair is represented by dividing the two coins with a dash (—) or slash (/). For instance, the combination BTC/ETH stands for Bitcoin (BTC) and Ethereum (ETH). A trader can use this combination to buy Bitcoin using ETH or sell Bitcoin for ETH.
Exchanges that support fiat currencies may also have fiat/crypto pairs in addition to crypto-to-crypto pairs. The fundamentals of trading are the same, though. The base currency in a pair is the first currency, while the quote currency is the second.
For instance, in the example given above, the base currency is BTC, and the quote currency is ETH. A pair on an exchange specifies how much of the quote currency is required to buy a whole unit of the base cryptocurrency. Bitcoin, Ethereum, and Tether (USDT) are the base currencies in the majority of trading pairings on most cryptocurrency exchanges.
Numerous factors affect the decision of which trading pair to use. The pair's liquidity and listing on the preferred market are two of the most important of these. The order may take some time to fill or it may not be filled at all if you choose a trading pair with low liquidity or trading volume.