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What is crypto pair trading?

Pair trading (or pairs trading) is a classical trading strategy that seeks to capitalize on discrepancies between two historically-correlated assets. Crypto pair trading uses the same principles, but in the crypto markets rather than the stock or securities market.

Why should you use trading pairs?

Another reason to use trading pairs is to decrease trading fees. If the trading pair did not exist, you would need to use at least two crypto trading pairs to obtain your desired cryptocurrency – and pay additional trading fees, as you would be committing to two trades as opposed to only one.

What is a crypto exchange & how does it work?

They allow users to trade one cryptocurrency for another without exchanging either for fiat currency first. Bitcoin ( BTC ), the leading crypto by market cap, and tether ( USDT ), which is the largest stablecoin pegged to the U.S. dollar, are frequently traded crypto pairs.

Do cryptocurrencies and pairs have a price correlation?

Some cryptocurrencies and pairs do have a certain price correlation where they follow each other but not always. Since Bitcoin is so tied to the entire cryptocurrency market many of them tend to follow it, but sometimes there is some deviation.

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