#TradingPairs101

🔄 What are trading pairs?

If you are new to crypto trading, you have probably already come across terms like BTC/USDT, ETH/BTC, or SOL/BNB. Here’s what all that means:

🔹 1. What is a trading pair?

It is a currency pair that is traded – the first symbol is the currency you are buying or selling, and the second is the currency in which the price is expressed.

👉 For example:

• BTC/USDT means you are buying or selling Bitcoin for Tether (USDT).

• ETH/BTC means you are trading Ethereum against Bitcoin.

🔹 2. Types of trading pairs

• Crypto/Stablecoin (e.g. BTC/USDT, ETH/USDC): The most common for beginners because the price is expressed in “stable” dollars.

• Crypto/Crypto (e.g. ETH/BTC, SOL/BNB): Allows direct exchange between cryptocurrencies.

• Fiat/Crypto (e.g. EUR/BTC, RSD/USDT – on local exchanges): When you trade between traditional money and crypto.

🔹 3. Why is it important to understand trading pairs?

✔️ It helps you know what you are actually buying and for what.

✔️ It allows you to choose the best pair for your strategy.

✔️ It prevents trading and conversion mistakes.

🔹 4. Watch liquidity and volume

Before trading a specific pair, check if there is enough volume and liquidity. Pairs with low turnover can be risky due to large price differences (slippage).

💡 In trading, properly understanding pairs means greater control over your strategy and reduced risk.

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