#TradingPairs101 # Trading Pairs 101 🔁💱

In crypto and traditional markets, understanding **trading pairs** is key to knowing **what you’re actually buying or selling**. Let’s break it down:

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## 💡 What is a Trading Pair?

A **trading pair** shows the **exchange rate between two assets**.

It answers: **“How much of Asset B do I need to buy 1 unit of Asset A?”**

> Example:

> **BTC/USDT = 67,000**

> Means 1 Bitcoin (BTC) costs 67,000 Tether (USDT).

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## 🧭 Common Pair Types

### 1. **Crypto-to-Stablecoin (e.g., BTC/USDT)**

* Most common for price quoting.

* Easy to measure value in USD-equivalents.

* Great for beginners and short-term traders.

### 2. **Crypto-to-Crypto (e.g., ETH/BTC)**

* Used to trade between two cryptocurrencies.

* Ideal when moving from one crypto asset to another **without using fiat**.

### 3. **Fiat-to-Crypto (e.g., BTC/USD, ETH/EUR)**

* Trades involving government-issued currencies.

* Typically only available on **CEXs** that support fiat deposits.

### 4. **Altcoin/Altcoin Pairs (e.g., SOL/ADA)**

* Common on **DEXs** and less liquid markets.

* Useful for seasoned traders trying to hedge or diversify directly.

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## 🔁 Base vs Quote Asset

| Term | Definition

| **Base** | The **first asset** in the pair (what you're buying or selling)

| **Quote** | The **second asset** in the pair (what you're using to price the base) |

> **Example: ETH/USDT**

>

> * **ETH** = base asset

> * **USDT** = quote asset

> * "You’re buying ETH, paying in USDT"

## 📊 How It Works in Practice

Let’s say you place a **buy order** for **ETH/USDT at 3,500**:

* You are **buying ETH**

* You are **paying 3,500 USDT per ETH**

Now, if you place a **sell order** for **ETH/USDT at 3,600**:

* You are **selling ETH**

* You will **receive 3,600 USDT per ETH**

## 🧠 Tips for Using Trading Pairs

* ✅ Always know which asset you're **buying** and which one you’re **selling**

* ✅ Watch the **liquidity** of less popular pairs (can lead to slippage)