A trading pair refers to two different types of assets that can be traded against each other on a financial exchange. In the world of cryptocurrency, for example, popular trading pairs include BTC/USDT or ETH/BTC. The first asset in the pair is the base currency, and the second is the quote currency. The trading pair shows how much of the quote currency is needed to buy one unit of the base currency. For instance, if the BTC/USDT pair is trading at 30,000, it means one Bitcoin is worth 30,000 Tether (USDT). Trading pairs help traders determine the value of one asset compared to another and enable smooth exchange between different cryptocurrencies or between crypto and fiat currencies.
