Currencies can be bought and sold and are genrally sold in pairs. Pairs, yes here crypto pairs.
Fore example, you would have heard in forex about , eur/usd, gbp/usd, aud/usd etc, as same as that in crypto we hear btc/usd, eth/usd, bnb/usd etc
What does that mean actually ?
For example, BTc/usd means $BTC is here base and usd here is quote currency. For every btc,to buy, how much usd are you selling is termed as btc/usd represents, this is the similar representation for eth/usd, bnb/usd etc.
So, this is what we mean by pair trading, trading both the currencies at same time, one helping the other, here as usd is stablecoin and thus we can say, here usd is sold for the other like btc but the pair is meant by btc/sd in such a sense that when it is sold, you will get only âusdâ.
The part above mentioned is fiat-pair-trading as âusdâ is stabelcoin here.
Now, lets discuss on crypto pair trading :-
Have you heard about eth/btc ?
When eth/btc pumps -> eth is strong and btc is weak
When eth/btc dumps > eth is weaker than btc
Why so ?
Eth/btc when pumps -> btc is sold and eth is bought, thus btc here is weak
When eth/btc dumps -> eth is sold and btc is bought , thus btc is strong
Now understood !
Current crypto pair trend is sol/eth where next buzz about etf is predicted to be Solana by masses thus sol/eth which means sol is bought and eth is sold for buying sol thus eth is weak here in current market and sol is strong.
When we talk about fiat-trading, we have many fiats/stablecoins like usdt, busd etc, and as of now which one Is safe and easy to use ?
As of now, usdt have the most volume to conduct transaction anytime in crypto thus usdt for time sake is good to use.
Hope you now have a good and very easy understandings of crypto pair trading.
