#TradingPairs101

A **trading pair** (e.g., BTC/USDT, ETH/BTC) represents two assets traded against each other on an exchange.

1. **Components:**

* **Base Currency:** The asset you buy or sell (left, e.g., BTC).

* **Quote Currency:** The asset used to price the base (right, e.g., USDT).

2. **Function:** Shows how much of the quote currency is needed to buy one unit of the base currency. A BTC/USDT price of 60,000 means 1 BTC costs 60,000 USDT.

3. **Purpose:** Enables direct exchange between assets without needing intermediate fiat steps (like cash).

4. **Liquidity:** Popular pairs (major pairs) typically have higher trading volume and tighter spreads.

5. **Market Structure:** Pairs form the core building blocks of cryptocurrency markets and exchanges.