#TradingPairs101
#TradingPairs101 โ How Pairs Work on Binance ๐๐ฑ
When trading crypto on Binance, youโll notice every asset is paired with another โ these are called trading pairs. But what do they really mean? Letโs simplify it ๐
๐ก What Is a Trading Pair?
A trading pair shows two assets you can swap between โ like BTC/USDT.
You're trading one asset for another.
โก๏ธ In BTC/USDT, you're buying or selling Bitcoin using Tether.
๐น Quote vs. Base Asset
Base Asset: The first in the pair (what you're buying or selling)
Quote Asset: The second in the pair (what you're paying with)
๐ Example:
In ETH/BTC, youโre buying Ethereum using Bitcoin.
In BNB/USDT, youโre buying BNB with Tether (USDT).
๐ง Why It Matters
Pairs define how you enter or exit a position
Not all coins are tradable with fiat โ some only pair with BTC, ETH, or BNB
You can strategize better with cross-pair opportunities
๐ ๏ธ On Binance, Youโll Commonly See:
Crypto/FIAT โ e.g. BTC/USDT, ETH/EUR
Crypto/Crypto โ e.g. MATIC/BTC, SOL/BNB
Stablecoin Pairs โ e.g. USDT/BUSD