#TradingPairs101

trading pairs of crypto

Crypto trading pairs represent two different cryptocurrencies that you can trade against each other on an exchange. For example, in the BTC/USDT pair, you can trade Bitcoin (BTC) against Tether (USDT), a stablecoin. Trading pairs fall into two main categories: fiat-to-crypto (like USD/BTC) and crypto-to-crypto (like ETH/BTC).

Each pair shows the value of the first currency in terms of the second. If the BTC/USDT price is 30,000, it means 1 Bitcoin equals 30,000 Tether. Trading pairs allow traders to swap between assets without converting to fiat money first, making trading faster and more flexible. Popular pairs usually involve stablecoins (USDT, USDC) or major coins like BTC and ETH, providing liquidity and tighter spreads. Understanding trading pairs is essential for navigating crypto exchanges and making strategic trading decisions.