#TradingPairs101 What is a trading pair?
A trading pair is a market that allows you to exchange one asset for another.
Example in crypto: BTC/USDT
Example in forex: EUR/USD
This means you are exchanging Bitcoin (BTC) for Tether (USDT), or euros (EUR) for US dollars (USD).
đ± Base currency vs. Quote currency
Base currency: the first asset in the pair (the one you are buying or selling).
Quote currency: the second asset (the one used to measure the value of the first).
> Example: if BTC/USDT = 65,000
It takes 65,000 USDT to buy 1 BTC
đ Types of trading pairs
1. Fiat/crypto (traditional currency against crypto):
Ex: USD/BTC, EUR/ETH
†Buy cryptos with fiat currency.
2. Crypto/crypto:
Ex: ETH/BTC, SOL/ADA
†Exchange one crypto for another.
3. Stablecoin/crypto:
Ex: BTC/USDT, ETH/USDC
†Less volatility because the quote currency is stable.
