Cryptocurrency trading pairs are a technique used to establish a correlation between two currencies of setting a fixed price. Once the value of one currency over the other has been determined, negotiations can be carried out to buy or sell this pair. In other words, it is giving the value of a unit of one currency relative to the value of another currency in the crypto market.
For example, if we have the BTC / ETH pair the price will tell us how many ETH tokens I must have to obtain 1 BTC, in this case let's say BTC / ETH = 40 ETH. The price of the pair will change depending on the value that one currency can acquire or lose over the other.
In this case, if the price of Bitcoin decreases, we will have to spend less ETH to buy 1 BTC and if it increases, it will be necessary to spend more.
The prices of these cryptocurrency trading pairs often fluctuate a lot, so new opportunities constantly appear in the market. Digital assets in crypto are usually very volatile, so some prices are influenced by new trends and it is at this moment that the trader comes into action.
Price variations can make us a lot of money if we buy at the lowest point and sell at the highest point. Every trader must repeat this process over and over again to maintain a level of profitability and accumulate experience on the crypto market.
Of course, take into consideration that there are several cryptocurrency trading pairs that are very illiquid and where volatility can be very large. The best you can do is to trade in the most popular trading pairs, which is going to provide you with good liquidity, great prices and clear information about digital assets.
The truth of the matter is that each trader will develop their own preferences regarding cryptocurrency trading pairs, as the effectiveness of their trades will make them lean towards one in particular. However, it is always advisable to keep an eye open and keep track of price fluctuations from other cryptocurrencies. It should be noted that when Bitcoin goes up 5%, other coins might be reaching 20% already.
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