Trading Crypto differs from trading traditional assets such as equities or commodities in a few ways. While most procedures are similar and even indicators can be used again, there is one significant difference that many users overlook at first. It can be tough for new investors to navigate the world of Cryptocurrencies. Before you can start trading these volatile financial products, you’ll need to learn a lot about them, both in terms of exchanging and safely storing them. One of your initial worries will be trading pairings. Even if you’ve previously invested in other assets such as stocks you may not be aware of this because such securities were most likely traded against your country's currency. 

In most cases, Cryptos are not traded against fiat currencies, though certain options are emerging now; instead, you'll be trading against the value of another Crypto. These combinations can help you figure out how much your coins are worth. Generally, an exchange will offer a variety of pairings from which you can choose based on the currencies you already own. A pairing is simply a stepping stone from which other coins or tokens can be traded. Of course, you must own the base currency to buy new currencies in one of these marketplaces. Note: these pairings are always compared to Bitcoin price.

What is Crypto trading pairing?

When trading Cryptocurrency on an exchange, you'll be using a trading pair. In most cases, users will trade against BTC, but there are a variety of trading pairings to choose from. When you see a Crypto's value listed, it's usually in comparison to the price of Bitcoin. To put it another way, how much of that Crypto you could get for one Bitcoin.

For example, if you’re a newbie and want to buy Bitcoin(BTC) with fiat currency, consider the US Dollar (USD). As a result, this trade will include the BTC/USD trading pair. Furthermore, if you wish to sell your BTC to buy another cryptocurrency, such as Ethereum(ETH), this trade will include the BTC/ETH trading pair. Traders commonly use BTC to trade against other Cryptocurrencies. Nevertheless, in contrast to BTC, there are a variety of other trading pairs that can be used. Finally, the value of a particular Cryptocurrency is presented. This is the value that is being compared to the price of Bitcoin. 

Also Read: What Is Crypto Copy Trading?

How does it work? 

Crypto pairs enable you to compare the costs of several Crypto's. For example, these comparisons show how much BTC is worth in ETH and how much ETH is valuable in Bitcoin Cash (BCH). Exchanges usually offer a variety of matching alternatives, allowing you to choose one based on the currencies you already own. For instance, if you hold Bitcoin, you can trade it with any pairing listed on an exchange that includes BTC. While some Crypto exchanges don't provide trading pairs between Cryptocurrencies and fiat currencies like the US dollar (USD). But exchanges like Gemini, Coinbase, Binance, and Kraken offer fiat trading pairs. As they have the most exchange options, the most versatile cryptocurrency pairs to trade are usually BTC and ETH.

What about liquidity? 

The key aspect that influences Crypto pair trading is liquidity. This relates to the capability to sell off assets rapidly. The more liquidity, the more benefit you'll have to sell the asset. The profit you make from each trade is defined by liquidity. Liquidity refers to the speed with which an order may be filled and the reduction of risk. If you always have buyers, you won't lose on a bearish trend and won't need to establish a low exchange rate to make an asset appealing to buyers. The liquidity of a Crypto is also influenced by its demand. This is why the top Crypto pairs include BTC, LTC, ETH, USDT, BCH, BNB. 

Also Read: Top 5 P2P Crypto Exchanges

Top 30 Crypto Pairs to Trade: 

10 Most Demanded Cryptocurrencies: 

1. Bitcoin: BTC is the indisputable dominant player in the Cryptocurrency market holding the tag of the most valuable and well-known digital coin. 
2. Bitcoin Cash: This is one of the most well-known and popular forks of Bitcoin. The block size is significant difference from the original. Which implies quicker and smoother transaction processing for users. 
3. Ethereum: Permanent number two in the crypto market. The ETH network, unlike Bitcoin, is focused on DApps. 
4. Litecoin: LTC is rapidly being utilized in the same way as Bitcoin, and it works similarly too.  It also provides lesser rates in addition to a faster transaction processing speed. 
5. Ripple: This Crypto is significantly different from other types of digital currencies because it’s not based on the Blockchain and is developed to distribute the ledger. It wouldn’t be much of a use for individual users than it is for larger businesses and enterprises that need to move large quantities of money across the world. Ripple's digital payment technology is more popular than its Cryptocurrency XRP. This is because the system allows for the transfer of funds in any form, including dollars and Bitcoin, or others.  Furthermore, the platform is geared toward large financial institutions, serving as a bridge between traditional financial systems and the Cryptography sector. 
6. IOTA: This Crypto stands for Internet of Things Application, and it was first introduced in 2016. Unlike most other Blockchain technologies, it doesn't function with a Blockchain; instead, it works with smart devices on the Internet of Things (IoT). To utilize it, you need to authenticate two other past transactions on the IOTA ledger, known as the Directed Acyclic Graph (DAG) but named The Tangle by its developers. That implies, according to Coin Central, the devices must be able to buy additional electricity, bandwidth, storage, or data whenever they need it and sell it when they don't. Furthermore, different varieties of Cryptocurrencies don't work in a vacuum, and they require some human intervention to stay on track. 
7. EOS: This is yet another important Crypto to trade that can help investors build financial wealth over time. EOS is powered by the EOS.IO Blockchain protocol, which lets users develop smart contracts and DApps in the same way that ETH does. To be more specific, EOS.IO was built to address Ethereum and Bitcoin’s performance and scalability challenges. 
8. Cardano: This Crypto network is utilized for cross-border money transactions that are quick and low-cost. The ADA network token is marketed as the only Cryptocurrency that follows a “scientific philosophy and research approach”.  This means it's subjected to further analysis from scientists and programmers. 
9. Monero: XMR is the coin with the highest level of user privacy protection. 
10.  Tether: USDT is one of the digital versions of the US dollar that is currently available. All of the benefits of Cryptos and fiat money are combined.   Although the US dollar is the most widely used fiat currency, US trades can be time-consuming and regulated, thus Tether has essentially become more convenient. Tether is one of the greatest Crypto’s to trade because of its security, and it is now one of the coins with the highest trading volume.  

Also Read: Top 5 Crypto Trading Softwares

Is it worth to trade Crypto pairs? 

Trading Crypto pairings is the most common activity among Crypto traders. This entails converting two currencies, fiat to Crypto or Crypto to Crypto. For example, if you want to purchase or sell BTC with US dollars, your Crypto trading pair will most likely be BTC/USD. Whereas BTC/ETH is the trading pair to use if you want to purchase or sell Bitcoin for Ethereum. As a result, a Crypto pair is a phrase that refers to two different types of currencies.

In most cases, one currency is quoted against the other. First comes the base currency in the listed currency, while the quote currency is the second. You may compare the value of one currency to another using currency. It indicates how much currency is required to purchase the base currency. Currency pairs are traded on Crypto exchanges and different Crypto pairs are listed on different exchanges. 

Therefore, you must guarantee that your desired pair is available. Furthermore, certain digital currencies can’t be directly exchanged for others, so you’ll have to trade a few pairings before acquiring your chosen Cryptocurrency. Complex arbitrage trading is another name for this. BTC, ETH, and LTC are some of the most popular base currencies. Traders profit from the fluctuation of currency rates while trading Crypto pairs. For example, when you purchase ETH and sell LTC (ETH/LTC), you’ll discover a buyer who wants to trade your ETH tokens for another Cryptocurrency. You should constantly hunt for a greater bid than your first purchase to make a profit. Thus, the transaction generates a profit, and the process is repeated.  

Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.