What is Crypto Pair Trading?
We are pleased to announce that you can now trade crypto-to-crypto pairs on Zebpay. The first pair we’re introducing is ETH/BTC. A new intuitive trade UI is introduced along with this update. You will be easily able to switch between INR and BTC trading pairs. Refer this page to learn about all the fees and limits related to crypto-to-crypto trades.
What is Crypto-Crypto Trading, also called “Crypto Pair Trading”?
Welcoming ourselves to the new world of crypto-crypto trading, it is interesting and important to understand the application of Crypto-Pair Trading.
“Pair-Trading” in cryptocurrency in simple language means “exchanging one virtual currency for another”.
How it works?
Every cryptocurrency in today’s world is associated a value, which is a multiple of value of domestic fiat currency. The same concept is applied while “Crypto-Crypto trading” where the base value of the relative alternative coins is decided to that of the Bitcoin.
Eg: BTC is valued at Rs 5,00,000 and the same time time ETH is value for Rs 50,000. So, value of the trading pair of ETH/BTC where BTC is base exchange virtual currency will be ETH/BTC = 0.1.
What it means?
You have to spend/short the quantity of 0.1 BTC in order to acquire 1 ETH.
Taking the above Indian Exchange prices (rounded-up) into consideration, the above matrix will help you understand the value equivalence of any currency against the base currency BTC, the most popular base exchange pair in the world.
Stages for Trading Crypto-Crypto Pairs:
The above chart depicts two simple steps of entering the phase of Trading Crypto-Crypto Pairs:
1. Deposit Cryptocurrency in Zebpay wallet or Purchase on our platform.
2. Exchange and trade the relative virtual currency against the virtual currency of your choosing from the given trading pairs.