#TradingPairs101
Trading pairs 101" is a foundational concept in crypto and traditional trading. Here’s a simple breakdown:
🔁 What is a Trading Pair?
A trading pair lets you exchange one asset for another on a market or exchange. It shows the relative value between two currencies.
Example:
BTC/USDT: This pair means you can trade Bitcoin (BTC) for Tether (USDT), and vice versa.
If BTC/USDT = 70,000, that means 1 BTC = 70,000 USDT.
📊 How It Works
When you see a trading pair like ETH/BTC:
Base Currency = ETH (the first one)
Quote Currency = BTC (the second one)
The price tells you how much BTC you need to buy 1 ETH.
✅ Types of Pairs
1. Crypto-to-Stablecoin (e.g., BTC/USDT)
Most common for traders who want to lock in profits or reduce volatility.
2. Crypto-to-Crypto (e.g., ETH/BTC)
Lets you trade between two different crypto assets.
3. Fiat-to-Crypto (e.g., BTC/USD)
Often used when entering or exiting the crypto market with real-world money.
💡 Why Trading Pairs Matter
You can’t trade all coins directly with your local currency.
You may need to route through a stablecoin or major coin like BTC or ETH.
Helps you understand market depth and liquidity.
🧠 Quick Tips
Use stablecoin pairs for more predictable value.
Use crypto pairs (like ETH/BTC) to grow your BTC or ETH stack.
Always check which pairs are available on your exchange before depositing crypto.