#TradingPairs101

In cryptocurrency and financial markets, a trading pair represents two different assets that can be traded for one another on an exchange. Common in crypto trading, trading pairs allow users to exchange one token or coin for another—such as BTC/ETH, which lets traders swap Bitcoin for Ethereum, or vice versa.

The first asset in the pair is the base currency, and the second is the quote currency. The pair shows how much of the quote currency is needed to buy one unit of the base currency. For example, in the BTC/USDT pair, if the price is 30,000, it means one Bitcoin costs 30,000 Tether (a USD-pegged stablecoin).

Some pairs are crypto-to-fiat (like ETH/USD), while others are crypto-to-crypto (like SOL/ADA). The availability of trading pairs depends on the exchange and its liquidity. Understanding trading pairs is essential for navigating the market efficiently, especially when converting between assets or executing arbitrage strategies.