What Are Trading Pairs? | #TradingPairs101
If you’ve ever dipped your toes into crypto or stock trading, you’ve probably come across the term trading pairs. But what does it actually mean?
In simple terms, a trading pair is the combination of two different assets that can be exchanged for one another. For example, $BTC /USDT means you can trade Bitcoin for Tether and vice versa.
So why does this matter?
✅ Efficiency: Trading pairs make it easier to compare the value of one asset against another.
✅ Liquidity: More trading pairs usually mean more market activity and better price stability.
✅ Flexibility: Want to trade ETH for SOL without going through fiat? Trading pairs make it possible.
> Pro tip: Always check the base and quote currency. In $BTC /USDT, BTC is what you're buying or selling, and USDT is the currency used to measure its value.
Learning how trading pairs work is one of the most empowering steps you can take on your trading journey. Stick with #TradingPairs101 and we’ll keep breaking it down.