A pip is commonly referred to in forex trading, quantitatively defining the smallest change in an exchange rate, and it applies similarly in cryptocurrency markets. Most cryptocurrency trades are measured in pips for pairs, such as BTC/USD or ETH/USD, where price movements can be extremely volatile. For example, a movement from $4000 to $4001 in Bitcoin represents a change of 1 pip if we consider the digit after the decimal place or in the smallest increment within the trading platform's measurement.