#TradingPairs101 📊 #TradingPairs101 – A Beginner’s Guide to Crypto Trading Pairs
When trading cryptocurrencies (like USDC, BTC, ETH), you’ll often come across the term “trading pairs.” Here's what it means in simple terms:
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🔁 What is a Trading Pair?
A trading pair shows two different assets you can trade directly with each other. For example:
BTC/USDC: This pair allows you to buy Bitcoin (BTC) using USDC, or sell BTC to receive USDC.
ETH/BTC: Trade Ethereum against Bitcoin.
SOL/USDT: Trade Solana against Tether (another stablecoin).
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🧠 How It Works:
The first currency in the pair is the one you are buying or selling (called the base currency).
The second currency is what you are using to buy or receive (called the quote currency).
👉 For BTC/USDC = 68,000, it means 1 BTC = 68,000 USDC.
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🧮 Example:
Let’s say you have 1,000 USDC and the BTC/USDC pair is at 68,000:
You could buy 0.0147 BTC with your 1,000 USDC.
Later, if BTC rises to 70,000 USDC, you could sell that 0.0147 BTC for 1,029 USDC — a small profit.
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💡 Tips for Beginners:
1. Use stablecoins like USDC or USDT for easier tracking of gains/losses.
2. Watch spreads — the difference between buy and sell prices.
3. Start with major pairs like BTC/USDC or ETH/USDC to avoid high volatility.
4. Always double-check which currency you're buying/selling in a pair!
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Would you like me to explain specific pairs, how to pick profitable ones, or tools to use for tracking them?