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🔄 #TradingPairs101 | What are trading pairs and why are they important?
A trading pair is simply a pair of currencies that can be traded one against the other in the market.
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📘 A simple example:
🔸 BTC/USDT
This means you are buying or selling Bitcoin (BTC) using Tether (USDT).
🔸 ETH/BTC
This means you are trading Ethereum (ETH) for Bitcoin (BTC).
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🔍 How to read the pair?
The format is always:
BASE / QUOTE
BASE: The currency you want to buy or sell.
QUOTE: The currency you pay or receive.
✅ Example: If you bought BTC/USDT at a price of 30,000 → you are paying USDT to get BTC.
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💡 Why are there multiple pairs?
More flexibility in trading between different currencies.
It facilitates access to currencies that do not have a direct price against local currencies.
Some currencies are only available against USDT or ETH, for example.
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🏦 Types of trading pairs:
Pair Type Example Description
Against a stablecoin BTC/USDT More stable and easier to price.
Against a digital currency ETH/BTC Direct trading between digital assets.
Against a local currency BTC/USD or BTC/SAR When buying with fiat (centralized exchanges).
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⚠️ Notes for beginners:
Always make sure to choose the right pair.
The price varies depending on the quote currency.
Some platforms do not offer all pairs, so you may need a "trading bridge" (e.g., BTC → USDT → another currency)
