#TradingPairs101

What are trading pairs?

In any financial market, including the cryptocurrency market, you do not buy or sell an asset in isolation. You always exchange it for another. This is where trading pairs come in. They represent two assets that can be exchanged for each other on an exchange.

Example:

BTC/USDT: This is a very common trading pair. It means you are trading Bitcoin (BTC) in relation to Tether (USDT), which is a stablecoin pegged to the US dollar.

BTC (Base Currency): This is the first asset listed and represents what you are buying or selling.

USDT (Quote Currency): This is the second asset listed and represents the currency in which the price of the base asset is quoted.