#TradingPairs101
trading pair is a combination of two assets that can be traded against each other on an exchange. In the context of cryptocurrency, this usually means two different digital currencies or a cryptocurrency paired with a fiat currency (like USD, EUR, or JPY).
How Trading Pairs Work
Base and Quote Currency: In a trading pair (e.g., BTC/USD), the first asset (BTC) is the base currency, and the second (USD) is the quote currency. The price tells you how much of the quote currency is needed to buy one unit of the base currency.
Example: If BTC/USD is trading at $60,000, it means you need $60,000 to buy one Bitcoin.
Crypto-to-Crypto Pairs: Some pairs involve only cryptocurrencies (e.g., BTC/ETH), meaning you can exchange Bitcoin for Ethereum directly.
