#TradingPairs101
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๐ #TradingPairs101 โ What Are Trading Pairs & Why Do They Matter? ๐น
If youโve ever traded crypto or forex, youโve probably seen symbols like BTC/USDT, ETH/BTC, or EUR/USD โ these are called trading pairs.
๐ก What is a Trading Pair?
A trading pair shows the two assets you are exchanging. It tells you how much of one asset (the quote) you need to buy 1 unit of the other (the base).
โ Example: In the BTC/USDT pair:
BTC is the base currency
USDT is the quote currency
If BTC/USDT = 50,000, it means 1 BTC = 50,000 USDT.
๐ Why It Matters:
๐น It helps you understand pricing
๐น Gives you access to different markets
๐น Allows you to trade without using fiat
๐น Enables better portfolio strategies
Knowing how trading pairs work is essential for making smart, informed trades in both crypto and traditional markets!
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