The development and integration of cryptocurrency within Africa have significantly changed the continent’s economic landscape in recent years. According to an article from Business Day,crypto adoptiongrew due to the growing preference against traditional payment systems and the accessibility of digital tools that enable Africans to make transactions conveniently. Crypto also allowed Africans to better protect their assets amid high inflation rates and socio-economic fluctuations that devalue local currencies, making it more beneficial to use than regular banking methods.
While the volatility associated with crypto has made some governments sceptical of its presence within the economy, many African residents were able to seek success within the market by using trading pairs. This article delves more into the importance of crypto trading pairs and how they helped push crypto use within the African continent despite unregulated uncertainty with digital assets.
What are crypto trading pairs
Trading pairs are an essential part of crypto trading, as these are two assets being exchanged without the need to exchange fiat money or currency first. Each asset in the pair can be valued independently, and traders can easily exchange one crypto asset for another, making it easier to trade.
It works similarly to trading pairs used in the foreign exchange (forex) market, where two fiat currencies have an exchange rate depending on the base and quoted currency. The base currency is bought or sold, while the quote currency is traded against it to determine the price.
Role of crypto trading pairs
Essentially, the role of crypto trading pairs is to have a system where the value of a crypto asset can be gauged by putting one currency against another. By comparing two currencies, the relative worth of an asset can be easily determined. Since there is a wide variety of currencies on the crypto market, trading pairs provide more convenience in establishing the value of a specific currency.
In line with this, trading pairs also give traders an advantage, as using a reliable online platform can help them see which assets will be profitable upon trade. When theytrade crypto online, traders will be able to see numerous crypto-to-crypto pairs, including some of the most popular pairings such as BTC/ETH, BTC/DOGE, BTC/XLM, and other diverse derivatives. Not only does a reliable platform increase traffic for crypto trade, but it also has low spreads, efficient security for traders’ assets, and 24/7 market access to monitor trends. This is especially beneficial for trading pairs since the market can be unpredictable, and staying on top of any movements is essential to maximise trending opportunities available within different currencies.
Recent history and performance in the market
While Africans have been enthusiastic about using crypto, and there are reliable trading platforms that they can access to execute transactions, the crypto sector faces financial difficulties. This is because most African crypto firms could not implement effective risk management strategies that protected assets when conducting trade and other activities within the crypto market. Additionally, the industry also faced a lot of scrutiny from local governments. It limited the use of crypto for some time, which made it difficult to access the market and perform trades.
Despite these challenges, most governments eventually saw the potential of crypto and worked to implementdecentralised financestrategies to embrace the use of digital assets further. Not only does this present more trading opportunities for residents, but it could also bolster the African economy since there are more avenues to make a profit and participate in international online trades for crypto.
Trading pairs for the future of crypto use
Considering thatcrypto use has settled relatively wellin many African countries and residents have primarily adopted the use of crypto in their day-to-day lives, it can be expected that trading pairs can further bolster the market. While other leading economies think crypto prices are too volatile, Africans can benefit from trading crypto pairs since they can trade crypto-to-crypto currencies without relying on fiat money.
With trading pairs, Africans can seek out profitable opportunities without being hindered by limited access to traditional banking and high transaction fees for cross-border payments. This is especially helpful for most African residents since they face constant devaluation of their fiat currencies and struggle with relative poverty. Since crypto is on an upward trajectory for Africa, it can be expected to grow further as more African residents are keen to seek out opportunities they could not access using traditional finance systems.
