In the cryptocurrency space, a trading pair is a combination used to exchange two different cryptocurrencies within an exchange. Simply put, it’s like using one currency to 'buy' another currency.

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🪙 What is a trading pair?

A trading pair indicates the trading relationship between two currencies, usually in the format:

A/B

This means you use currency B to buy currency A, or exchange A for B.

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📌 Examples:

1. BTC/USDT

• Indicates you use USDT (stablecoin) to buy BTC (Bitcoin)

• The price shown is how much 1 BTC is worth in USDT

• If you sell BTC, you will also receive an equivalent amount in USDT

2. ETH/BTC

• Indicates you use BTC to buy ETH, or exchange ETH back for BTC

3. PEPE/USDT

• Indicates you use USDT to buy PEPE coin

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🔄 Why are trading pairs important?

• Each currency has different tradable pairs; for instance, new coins usually only have 'USDT trading pairs'.

• If a coin has three trading pairs: BNB/PEPE, ETH/PEPE, and USDT/PEPE, you can choose the most cost-effective or convenient trade.

• If a coin only has a few trading pairs, you may need to exchange it for other coins to trade indirectly.

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💡 A small reminder:

• **Mainstream coins (like BTC, ETH, USDT)** are the most common base currencies.

• When choosing a trading pair, be sure to check the liquidity and trading volume to avoid significant slippage or inability to complete transactions.

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If you encounter any trading pairs on a particular currency or platform that are unclear, feel free to share them with me, and I can explain them to you!