<p>Exchanges generally choose a few base currencies and build trading pairs on top of them. It has multiple reasons:</p>

<ul>
<li><em>The exchange needs to find a base currency where people can understand the value of X from X/base</em>. BTC/USD is $1350 that gives you a clear idea of how much BTC is worth in USD. That is different from LTC/DRK = 0.98. What did that tell you? Not much. You are in need of a base currency you are familiar with. Most people have a good feeling for the value of USD. Therefore, it is a good denominator.</li>
<li><em>The exchange needs to find a base currency which people are most likely to deposit/withdraw for trading</em>. After you are done with trading numerous altcoins with each other, you want to exit the trading platform in a currency that has a meaning to you. To make that easy, base pairs are usually BTC.</li>
<li>This is probably the most important, if an exchange has BTC LTC USD, they will most likely not create BTC/LTC pair because that will decrease the liquidity of LTC/USD pair. They will most likely only offer BTC/USD and LTC/USD. On top of that, the extra pair will have maintenance cost to the exchange.</li>
</ul>

CC BY-SA 3.0
2014-06-03T11:16:00.480Z
I disagree on your last point. Why is the most important? And I trade on Kraken and btc-e, which both have BTC/LTC/USD (and EUR) and BOTH have all the market pairs with those currencies. I really like those to have all the options, and I will stop trading on an exchange without one of them. I think the other two options are far more important for the exchange to decide which pairs they offer. But I am not an exchange developer or something :)
Mathias711
CC BY-SA 3.0
2014-06-03T12:04:09.240Z
BTC/LTC/USD is not a good example. But it's understandable. They are liquid pairs. Imagine less liquid pairs. PPC/NXT/DOGE then you understand what I'm saying.
Emre K.
CC BY-SA 3.0
2014-06-03T12:05:21.210Z
Ahh, yes. Then BTC/LTC was the worst example you could choose. But I understand your point
Mathias711
CC BY-SA 3.0
2014-06-03T12:09:21.270Z
The decision to open BTC/LTC would depend on the liquidity of the exchange. IF you don't have much, then you wouldn't open BTC/LTC. Imagine being a small exchange.
Emre K.
CC BY-SA 3.0
2014-06-03T09:49:52.557Z
2014-06-03T09:55:21.717Z
2014-06-03T09:55:21.717Z
Emre K.
<p>Cryptocurrency trading pairs for example ltc/btc, doge/btc should be paired using some criteria. I'd like to comprehend on what basis they are paired. </p>

<bitcoind><bitcoin-core><litecoin><trading><dogecoin>
How do exchanges decide on cryptocurrency trading pairs?
Sap
# How do exchanges decide on cryptocurrency trading pairs?

(Asked by: username_0 on 2014-06-03)

Cryptocurrency trading pairs for example ltc/btc, doge/btc should be paired using some criteria. I'd like to comprehend on what basis they are paired.

**Tags:** bitcoind, bitcoin-core, litecoin, trading, dogecoin


---

## 1 answers

### Answer by username_1 on 2014-06-03. Score: 4 | Accepted answer

Exchanges generally choose a few base currencies and build trading pairs on top of them. It has multiple reasons:

* *The exchange needs to find a base currency where people can understand the value of X from X/base*. BTC/USD is $1350 that gives you a clear idea of how much BTC is worth in USD. That is different from LTC/DRK = 0.98. What did that tell you? Not much. You are in need of a base currency you are familiar with. Most people have a good feeling for the value of USD. Therefore, it is a good denominator.
* *The exchange needs to find a base currency which people are most likely to deposit/withdraw for trading*. After you are done with trading numerous altcoins with each other, you want to exit the trading platform in a currency that has a meaning to you. To make that easy, base pairs are usually BTC.
* This is probably the most important, if an exchange has BTC LTC USD, they will most likely not create BTC/LTC pair because that will decrease the liquidity of LTC/USD pair. They will most likely only offer BTC/USD and LTC/USD. On top of that, the extra pair will have maintenance cost to the exchange.

> **Comments:**
> **username_2**: I disagree on your last point. Why is the most important? And I trade on Kraken and btc-e, which both have BTC/LTC/USD (and EUR) and BOTH have all the market pairs with those currencies. I really like those to have all the options, and I will stop trading on an exchange without one of them. I think the other two options are far more important for the exchange to decide which pairs they offer. But I am not an exchange developer or something :)  
> **username_1**: BTC/LTC/USD is not a good example. But it's understandable. They are liquid pairs. Imagine less liquid pairs. PPC/NXT/DOGE then you understand what I'm saying.  
> **username_2**: Ahh, yes. Then BTC/LTC was the worst example you could choose. But I understand your point  
> **username_1**: The decision to open BTC/LTC would depend on the liquidity of the exchange. IF you don't have much, then you wouldn't open BTC/LTC. Imagine being a small exchange.  

---

