#CircleIPO Pair Up! Trading Pairs 101
• Trading pairs are two cryptocurrencies or assets you can exchange on an exchange, like BTC/USDT.
• The first asset is called the “base” currency that you’re actually buying or selling.
• The second is the “quote” currency used to price the base asset’s value.
• The displayed price shows how much of the quote currency equals one unit of the base.
• Major pairs involve top coins with large market caps, like BTC/ETH or ETH/USDT.
• Cross pairs trade two cryptocurrencies without involving fiat currency, for example BTC/ETH.
• Direct pairs to fiat, like BTC/USD or ETH/EUR, track real-world value directly.
• Liquidity matters: higher trading volume means easier execution and tighter bid-ask spreads.
• Always check trading fees for each specific pair, as they can eat into your profits.
• Practice on demo or paper trading accounts to understand pair behavior before risking real funds.
Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.