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#TradingPairs101 A **trading pair** (e.g., BTC/USDT, ETH/BTC) represents two assets traded against each other on an exchange. 1. **Components:** * **Base Currency:** The asset you buy or sell (left, e.g., BTC). * **Quote Currency:** The asset used to price the base (right, e.g., USDT). 2. **Function:** Shows how much of the quote currency is needed to buy one unit of the base currency. A BTC/USDT price of 60,000 means 1 BTC costs 60,000 USDT. 3. **Purpose:** Enables direct exchange between assets without needing intermediate fiat steps (like cash). 4. **Liquidity:** Popular pairs (major pairs) typically have higher trading volume and tighter spreads. 5. **Market Structure:** Pairs form the core building blocks of cryptocurrency markets and exchanges.
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