#TradingPairs101

In crypto trading, a trading pair represents two currencies you can trade between. It shows the value of one asset relative to another. For example, in the pair BTC/USDT, you’re trading Bitcoin against Tether (a stablecoin). If BTC/USDT is priced at 70,000, that means 1 BTC equals 70,000 USDT.

🔁 How It Works

When you buy BTC/USDT, you're using USDT to buy Bitcoin. When you sell, you're exchanging Bitcoin for USDT. Trading pairs exist for crypto-to-fiat (e.g., ETH/USD) and crypto-to-crypto (e.g., ETH/BTC) trades.

💡 Base vs Quote Currency

Base: the first currency (what you’re buying or selling)

Quote: the second currency (what you're paying with)

✅ Why It Matters

Choosing the right trading pair can lower fees and improve execution.

Not all exchanges list the same pairs—check liquidity and volume before trading.

Understanding pairs helps with arbitrage and portfolio diversification.

🚨 Pro Tip: Always consider the spread (difference between buy/sell price) and trading volume to ensure you're in a liquid and cost-effective market.

Whether you're day trading or investing long-term, mastering trading pairs is a core skill for navigating crypto markets.

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