#TradingPairs101

📘 #TradingPairs101 – What is meant by trading pairs?

Trading pairs represent the relationship between two assets that are traded against each other, such as:

🔸 BTC/USDT

🔸 ETH/BTC

In the BTC/USDT pair, you buy or sell Bitcoin against Tether (USDT).

Each pair defines how the price of the asset is measured, and the currency used for payment.

Types of trading pairs:

1. Pairs against stablecoins: like BTC/USDT – suitable for speculating with a clear and direct dollar price.

2. Pairs against other cryptocurrencies: like ETH/BTC – reflect the relative strength between two currencies.

💡 Tips for traders:

Choose the right pair based on your goal (making profits in dollars or increasing your holdings of a specific currency?)

Monitor liquidity and the spread before entering any pair

Do not assume that every pair performs the same even if the currency itself is common.