#TradingPairs101
When you trade one currency against another, you are trading a pair such as:
BTC/USDT = You are buying or selling Bitcoin against the digital dollar (USDT).
ETH/BTC = You are buying or selling Ethereum against Bitcoin.
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💡 Types of Trading Pairs:
1. Fiat Currency Pairs:
Like BTC/USDT or ETH/USD – Used to measure the value of the currency against the dollar.
2. Crypto-to-Crypto Pairs:
Like SOL/ETH or MATIC/BTC – Used to exchange currencies without needing to convert them to dollars.
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🧠 Tips for Understanding Trading Pairs:
The pair is read from left to right:
BTC/USDT means how much USDT you need to buy 1 BTC.
If you expect the left currency (BTC) to rise, you can buy (LONG).
And if you expect it to fall, you can sell (SHORT).
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⚠️ Important Notes:
Always understand the second party of the pair (Is it a dollar? Or another currency?).
Some pairs are more liquid (like BTC/USDT), which makes trading in them faster and less risky.
Unknown or low liquidity pairs may have high price differences (Slippage).
