#TradingPairs101

TradingPairs101**

Trading pairs are the foundation of exchange in financial markets, especially in cryptocurrencies. Each pair connects two currencies:

- **First (Base)**: the currency you are buying (like BTC or ETH).

- **Second (Quote)**: the currency that sets the price of the base (like USDT or USD).

**Why use them?**

- They allow for **direct** currency exchanges without multiple conversions (example: buying ETH for USDT through the ETH/USDT pair).

- They measure the **relative** value between currencies (like knowing the value of 1 ETH against BTC through the ETH/BTC pair).

**Main Types:**

1. **Fiat/Crypto**: like BTC/USD (Bitcoin against Dollar).

2. **Crypto/Crypto**: like SOL/ETH (Solana against Ethereum).

3. **Stable/Crypto**: like BTC/USDC (Bitcoin against Stable Dollar).

**Be cautious in choosing the right pair**

Always note these points in your chosen pair:

- **Liquidity** (high spreads).

- **Trading Volume** (avoid low-demand pairs).

👈 Be cautious and don't rush in your study for your selection.