**Trading Pairs 101**
A **trading pair** (or cryptocurrency pair) is the fundamental structure on exchanges, showing how two distinct assets can be traded against each other. It's represented as `BASE/QUOTE` (e.g., `BTC/USDT`).
* **Base Asset:** The asset you buy or sell (e.g., `BTC`). This is the commodity being valued.
* **Quote Asset:** The asset used to price the base (e.g., `USDT`). It acts like the currency.
The **price** (e.g., `BTC/USDT = 60,000`) means 1 Bitcoin costs 60,000 Tether. Trading pairs enable:
1. **Price Discovery:** Establishing the market value of one asset relative to another.
2. **Direct Trading:** Swapping the base asset for the quote asset instantly (e.g., selling BTC for USDT).
3. **Market Access:** Providing liquidity and entry points into different cryptocurrencies.
Common quote assets include stablecoins (USDT, USDC) or major coins (BTC, ETH). Pairs like `ETH/BTC` show the relative value between two cryptocurrencies. Understanding pairs is essential for executing trades and analyzing market dynamics.
