Trading pairs: The Basics Explained
A trading pair is a market between two different assets that can be exchanged for each other. In the world of crypto and forex, trading pairs allow you to compare the value of one asset against another. For example, in the BTC/USDT trading pair, you are buying or selling Bitcoin in exchange for Tether (a stablecoin).
The first asset in the pair is the base currency, and the second is the quote currency. So if BTC/USDT is priced at 30,000, that means one Bitcoin equals 30,000 USDT.
Understanding trading pairs is essential because they show you how much of one currency you need to get another. Different exchanges offer various pairs, depending on liquidity and demand. For traders, choosing the right trading pair can impact transaction costs, execution speed, and overall profitability.
Mastering trading pairs is a foundational step toward becoming a successful trader.
