#TradingPairs101
Summary: #TradingPairs101
What are trading pairs?
🔹 Trading pair = comparison between two currencies (example: BTC/USDT)
It determines how much one currency is worth against another
BTC/USDT means how much Bitcoin is worth in digital dollars (USDT)
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Types of trading pairs:
1. Pairs with stablecoins:
For example: BTC/USDT, ETH/USDC
📌 Easy to understand, reflects the price in dollars
2. Pairs with other cryptocurrencies:
For example: ETH/BTC, SOL/ETH
📌 Useful for converting between currencies without going back to dollars
3. Pairs with fiat currencies:
For example: BTC/USD, ETH/EUR
📌 Connects crypto with banks
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Why are trading pairs important?
✅ Help you determine how to trade
✅ Provide direct conversion options
✅ Affect execution speed and fees
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Quick example:
You have ETH and want SOL
🔹 Option 1: Use the SOL/ETH pair
🔹 Option 2: Convert ETH to USDT, then buy SOL with USDT
✳️ Best = the pair with higher liquidity and lower fees