Trading Pairs 101 in the Market
A trading pair lets you swap one crypto for another, like BTC/USDT. The first asset (BTC) is what you're buying or selling; the second (USDT) is what you're paying with. Pairs are key to price discovery and market activity. There are two main types:
Crypto-to-Stable (e.g., ETH/USDT): Great for less volatility, easy profit tracking.
Crypto-to-Crypto (e.g., ETH/BTC): Used for portfolio diversification or altcoin swings.
Popular pairs have high liquidity, tighter spreads, and better execution. Low-volume pairs can lead to slippage or stuck trades. On DEXs, pairs are powered by liquidity pools, while on CEXs, they use order books. Always check volume, spread, and fees before trading.
Smart traders choose pairs based on market trends, volatility, and strategy. Mastering trading pairs = mastering crypto entry and exit points.
