Been trading crypto for a few months now and keep seeing this term everywhere.
People talk about fiat pairs and fiat deposits but I’m not totally clear on what it actually refers to in the crypto context.
Fiat is just regular money like dollars or euros.
Fiat refers to government-issued currency like USD or EUR. Fiat pairs are crypto prices compared to these currencies.
Fiat is any currency that’s not backed by something like gold. Most currencies today, including dollars and euros, are fiat money since they only hold value because the government says so. When exchanges mention fiat, they’re indicating that you can trade or deposit with your regular country’s money, making it easier to calculate your gains and losses.
Fiat is basically traditional money that governments issue - dollars, euros, pounds, whatever your country uses.
In crypto trading, when you see fiat pairs like BTC/USD or ETH/EUR, it means you’re trading crypto against regular currency. Fiat deposits are just putting your regular bank money into the exchange.
I use fiat pairs all the time because it’s easier to track profits in dollars than trying to figure out crypto-to-crypto values. Plus most exchanges let you cash out directly to fiat when you want real money in your bank account.
Fiat is what we use as regular money, controlled by banks. Currencies like dollars and euros are fiat. In crypto trading, fiat pairs show how much profit or loss you have in actual cash. It’s easier to track gains this way instead of converting between different cryptos. Serious traders often focus on major fiat pairs since they have better liquidity and tighter spreads.