#TradingPairs101
When you enter a trading platform, you will find assets traded in the form of "pairs", but what does that mean? 🤔
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💡 What is a trading pair?
It is a comparison between two digital assets where one is used to purchase the other.
📌 Example:
BTC/USDT = How much USDT do you need to buy 1 BTC?
ETH/BTC = How much BTC do you need to buy 1 ETH?
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✳️ Types of trading pairs:
1️⃣ Pairs with stablecoins:
Such as BTC/USDT or ETH/FDUSD – the most commonly used due to price stability 💵
2️⃣ Crypto to crypto pairs:
Such as ETH/BTC or SOL/BNB – used to swap one asset for another directly 🔄
3️⃣ Pairs with local currencies (on P2P platforms):
Such as BTC/SAR or USDT/EGP – important when converting to local currencies 🌍
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📈 Choosing the right pair helps you to: ✔️ Analyze price movements accurately
✔️ Manage capital efficiently
✔️ Reduce price spreads (Spreads)
