In cryptocurrency, the term “trading pairs” describes an exchange between one type of cryptocurrency and another. For example, the ETH/BTC “trading pair”.
In other words, not only can you exchange money for a cryptocurrency, but you can also exchange a cryptocurrency for a cryptocurrency.
And in fact, some cryptocurrencies can only be purchased with other cryptos, so it’s very important to learn about pair trading if you want to expand your crypto wallet beyond the major coins.
In this article, we explore the 27 best cryptocurrency pairs, so you can start your trading career today. But first, it’s important to take a closer look at the different factors related to selecting the best trading pairs for your goals. Understand the different types of cryptocurrency
Cryptocurrencies can act like real money – in a sense, they are real money – but they take the form of a digital or virtual form and are neither managed nor governed by a central authority.
A true product of the digital age, no bank, government or intermediary needs to be involved.
What ensures security is that they are encrypted (secure) with specialized computer code called cryptography. They are designed as a purposely complicated puzzle so that they are difficult to decipher (and hack). Alternative Cryptocurrency Coins (Altcoins)
These usually refer to all coins that are not Bitcoins, for example Peercoin, Litecoin, Dogecoin, Auroracoin and Namecoin. In fact, the name “Altcoin” actually means “alternative to Bitcoin.” Namecoin is considered the very first Altcoin, created in 2011.
Most cryptocurrencies like Bitcoin have a limited amount of coins, to keep the balance under control and boost its perceived value.
There are only 21 million Bitcoins that can be used, and once they are mined, that’s it. The only way to do more is for Bitcoin’s protocol to allow it.
Many Altcoins claim to be better versions of Bitcoin, but most of them are built on the same basic framework as Bitcoin.
Yet each system often differs from another, as they are created to serve various purposes and applications, and identified in different ways. And some coins don’t work with the same open source protocol as Bitcoin.
For example, currencies like Ethereum, Ripple, Omni, Nxt, Waves, and Counterparty have created their own separate system and protocol and are autonomous. Chips
Unlike Altcoins, tokens are created and distributed via an initial coin offering, or ICO, just like a stock offering. They can be represented as value tokens (Bitcoins), security tokens (to protect your account), or utility tokens (intended for specific uses).
They are not so much intended to be used as money as to describe a function. Like US dollars, they represent value but they are not in themselves of value.
Tokens are a type of encryption, referring specifically to long lines of numbers and letters representing the cryptography used in a transaction, such as a money transfer or bill payment. In short, tokens cover a number of meanings.
For example, Bitcoin and Ether (from Ethereum) are considered cryptographic tokens. The most common types of cryptocurrencyBitcoin
Perhaps the “Kleenex” or “Coca Cola” of all cryptocurrencies, in that its name is the most recognizable and most closely associated with the cryptocurrency system.
There are currently more than 17.6 million Bitcoin tokens in circulation, against a current capped limit of 21 million. Bitcoin Cash
Introduced in 2017, Bitcoin Cash is one of the most popular types of cryptocurrency on the market.
Its main difference with the original Bitcoin is its block size: 8 MB. Compare this to the block size of the original Bitcoin of only 1 MB. What this means for users: faster processing speeds. Litecoin
Litecoin is increasingly used in the same breath as Bitcoin, and it works in virtually the same way.
It was created in 2011 by Charlie Lee, a former Google employee. He designed it to improve Bitcoin technology, with shorter transaction times, lower fees, more concentrated miners. Ethereum
Unlike Bitcoin, Ethereum doesn’t focus as much on digital currency as it does on decentralized applications (phone apps). You might think of Ethereum as an app store.
The platform seeks to restore control of apps to its original creators and remove that control from intermediaries (like Apple, for example).
The only person who can make changes to the app would be the original creator. The token used here is called Ether, which is used as a currency by developers and app users. Ripple
Ripple is a type of cryptocurrency, but it is not based on the block chain. This doesn’t mean so much for individual users as it does for large corporations and corporations, which move larger sums of money (its currency is known as XRP) around the world.
It is better known for its digital payment protocol than for its crypto XRP. This is because the system allows the transfer of money in any form, whether in dollars or even Bitcoin (or others).
It claims to be able to process 1,500 transactions per second (tps). Compare that with Bitcoin, which can handle 3-6 tps (not counting scaling layers). Ethereum can handle 15 tps. Stellar
Stellar focuses on money transfers and its network is designed to make them faster and more efficient, even across national borders. It was designed by Ripple co-founder Jed McCaleb in 2014 and is operated by a nonprofit called Stellar.org.
Its aim is to help developing economies that may not have access to traditional banks and investment opportunities. It does not charge users or institutions for the use of its Stellar network and covers operating costs by accepting tax-deductible public donations. Neo
Formerly called Antshares and developed in China, NEO is very actively seeking to become a major global player in cryptography. It focuses on smart contracts (digital contracts) that allow users to create and execute agreements without resorting to an intermediary.
A NEO white paper explained that developers can develop smart contracts using common programming languages (such as Java or C#).
Ethereum, on the other hand, uses its own programming languages that developers must first learn before creating smart contracts on its platform. Cardano
Cardano aka ADA is used to send and receive digital funds. It claims to be a more balanced and sustainable ecosystem for cryptocurrencies, and the only coin with a “scientific philosophy and research-driven approach.”
This means that it is subject to particularly rigorous examination by scientists and programmers. It was founded by Charles Hoskinson, who is also the co-founder of Ethereum. IOTA
Launched in 2016, IOTA stands for Internet of Things Application. Unlike most other Block Chain technologies, this doesn’t actually work with a block and a chain; it works with smart devices on the Internet of Things (IoT).
All you have to do to use it is check two other previous transactions on the IOTA ledger, which is called the Directed Acyclic Chart (DAG), but the creators of IOTA call it The Tangle.
According to Coin Central, this means that devices need to be able to buy more electricity, bandwidth, storage, or data when they need it, and sell those resources when they don’t.