#TradingPairs101
Trading pairs define how assets are exchanged in markets. A pair like BTC/USDT means Bitcoin is traded against Tether, determining its value in terms of USDT. Fiat-to-crypto pairs, such as USD/ETH, allow direct conversion, while crypto-to-crypto pairs, like ETH/BTC, enable asset swaps without involving fiat currencies.
Liquidity, volatility, and spread vary across pairs, influencing execution speed and trade efficiency. Choosing the right pair based on strategy is key—some offer stability, others bring high risk and reward. Understanding trading pairs empowers traders to optimize opportunities in spot, margin, and futures markets.
