#TradingPairs101 : A Beginner's Guide 🏞️
Understanding Trading Pairs
A trading pair represents the exchange rate between two assets, such as currencies or crypto currencies.
In trading, one asset is exchanged for another.
Key Concepts
- Base asset: The first asset in the pair, which is being bought or sold.
- Quote asset: The second asset, used to quote the price of the base asset.
- Exchange rate: The price of the base asset in terms of the quote asset.
Example
In the BTC/USD pair, Bitcoin (BTC) is the base asset, and the US dollar (USD) is the quote asset. If BTC/USD is 30,000, one Bitcoin can be exchanged for 30,000 US dollars.
