Two cryptocurrencies paired together for ease of conversion. Supported by the crypto exchanges, crypto trading pairs let people immediately swap one crypto for another. Otherwise, a person has to sell the first crypto for either fiat currency or Bitcoin, both of which are always available; wait for the transaction to complete and then purchase the second crypto. Crypto pairs also save fees, because they provide a single a-to-b transaction rather than a-to-b and b-to-c transactions.
Trading Pair Examples
Examples of crypto-to-crypto trading pairs are BTC/ETH (bitcoin/ether) and BTC/USDT (bitcoin/Tether). The latter is a crypto-to-stablecoin trading pair. See stablecoin
Arbitrage means buying low on one exchange and selling at a higher price on another. This is commonly done by stock market and currency traders, and crypto traders can also take advantage of price discrepancies on the exchanges. Bitcoin, ether and other cryptos may differ several percentage points on any given day between exchanges. Trading pairs enable quick conversion between cryptos, and in a highly volatile market, speculators must make fast trades to make money. See crypto glossary