Today, trading has become the source of work for many and the safest way to invest for others. Its popularity has contributed to the more outstanding management of the scared of cryptocurrency and the digital one.
When we talk about trading, it is nothing more than the exchange or purchase and sale of various types of traditional or digital assets, whose objective is to diversify investments and distribute profits among all participants.
It is important to note that although the cryptocurrency market offers many opportunities to obtain juicy profits, it is not as easy as it seems; trading requires preparation and analysis.
Let us remember that the volatility of Bitcoin is one of the most influential factors in terms of the valuation of this type of digital asset, which can vary even in periods of 1 minute, generating losses or profits for its users.
This type of information does not create insecurities or panic in future cryptocurrency investors. However, trading novices need to be prepared financially and psychologically since trading is more psychology than finance.
Currency pairs in the crypto environment
In the traditional financial market, we have heard about currency pairs, which represent the value of a particular asset, one Fiat currency over another.
The concept of cryptocurrency pairs is the same, except that a cryptocurrency is leveraged concerning a Fiat currency, where the digital asset will be the base currency, and the traditional money will be the value reference of the cryptocurrency.
The most used cryptocurrency pair is BTC/USD. Therefore, we can compare the price of the world’s leading cryptocurrency to the dollar currency, one of the most used as a form of payment internationally.
Cryptocurrency pairs represent the primary type of investment traders make at the beginning of their careers; therefore, it is the easiest way to invest your capital based on tangible reality.
It used to visualize the revaluation or devaluation of a specific digital asset.
When the pair’s value increases, the digital base currency has acquired a higher value, making its position stronger. In contrast, if the opposite occurs, the value of the base currency decreases, and the weakening of the same is evident in the financial market.
How do cryptocurrency pairs work?
When operating with cryptocurrencies, in this case with currency pairs, it is essential to indicate that the transactions carried out in the financial market are to exchange some cryptocurrencies for others or, failing that, for another type of currency.
It is essential to know all the types of cryptocurrency pairs that exist to establish a trading plan that defines the appropriate strategies to make investments that generate profits.
In many cases, not all pairs are available; it is also important to investigate which currencies have the highest convertibility rate in traditional currencies. However, if you are new to this ecosystem, you will know it is safest to go for the leading cryptocurrencies.
Some of the most used cryptocurrency pairs are: AXS/USD, B2M/USD, BTC/EUR, DOGE/USD, ETH/USD, SHIB/USD, SLP/USD, SOL/USD, ZIL/USD, such as You can see most of these cryptocurrencies compared to the value of the dollar (USD).
When investing, it is also interesting to evaluate what stablecoins are, is a type of Fiat currency backed by a specific traditional market asset.
A viable option when trading with cryptocurrencies is to consider exchanging them for stablecoins in the event of not being able to change the value of a given cryptocurrency to some currency of traditional use.
To operate with cryptocurrency pairs, it is necessary to register on a reliable exchange or exchange platform since this will be what guarantees the safety of the invested capital and the profits generated by the appropriate investments.
Once inside the platform, it is the right time to visualize the performance of the digital currency in a given period, execute the established trading plan and make the most of the opportunities that the market offers.
Conclusion
Technology has become part of our daily lives in such a changing world, where intelligent investments generate the expected profits. However, assuming a percentage of risk that tells us when we should stop when investing.
All markets are variable; the only difference of the digital market is that the volatility of the cryptocurrencies can play against the investor if the pertinent analyzes are not carried out.
