#TradingPairs101 🔁 #TradingPairs101: What are trading pairs and how do they work?
In the world of cryptocurrencies and traditional finance, the term "trading pair" is the foundation of any exchange operation. A trading pair is a combination of two assets that can be exchanged for one another. For example, BTC/USDT means you can buy or sell Bitcoin for Tether (a stablecoin pegged to the US dollar).
🔍 How does it work?
When you trade through a trading pair, the first currency indicates what you are buying or selling, while the second indicates what you are paying for it. If the price of BTC/USDT = 65,000, it means that 1 BTC costs 65,000 USDT.
📌 Popular examples of pairs:
BTC/USDT — for trading Bitcoin for Tether
ETH/BTC — Ethereum for Bitcoin
EUR/USD — in forex, this is the exchange rate of the Euro to the US dollar
🧠 Why is it important?
Understanding trading pairs allows you to:
Choose favorable entry and exit points
Save on fees
Conduct arbitrage between exchanges or pairs
Analyze the market through cross-rates (for example, ETH/BTC)
💡 Tip: Before trading, always check the market depth, liquidity, and choose a pair that aligns with your currency or strategy.
