#TradingPairs101

# Trading Pairs 101

Trading pairs represent the foundation of cryptocurrency exchange operations, showing the relationship between two assets being traded. Each pair displays how much of one currency is needed to purchase another, such as BTC/USDT indicating Bitcoin's price in Tether. Base currency appears first (what you're buying), while quote currency comes second (what you're paying with). Major pairs typically involve Bitcoin or Ethereum as base currencies, while fiat pairs use USD, EUR, or other traditional currencies. Stablecoin pairs like USDT, USDC provide dollar-pegged alternatives without direct bank connections. Cross-trading allows indirect exchanges—buying ETH with BTC requires an ETH/BTC pair. Pair selection impacts trading costs, liquidity, and available strategies. High-volume pairs offer better spreads and execution, while exotic pairs may present opportunities alongside increased risks. Understanding pair mechanics enables efficient portfolio management and cost-effective trading strategies.