#TradingPairs101
Trading Pairs 101: Understanding the Basics
In cryptocurrency trading, a trading pair represents two different assets you can trade between—like BTC/ETH or USDT/BNB. It shows how much of one asset (the quote currency) is needed to buy one unit of another (the base currency).
For example, in the BTC/USDT pair:
BTC is the base currency (what you’re buying or selling).
USDT is the quote currency (what you’re using to value the base).
If BTC/USDT = 70,000, that means 1 BTC costs 70,000 USDT.
There are two main types of pairs:
1. Crypto-to-fiat pairs (e.g., BTC/USD): Good for beginners and easy to track.
2. Crypto-to-crypto pairs (e.g., ETH/BTC): Useful for altcoin traders and diversification.
Choosing the right pair depends on your strategy, risk tolerance, and market understanding. Always check liquidity and fees before trading—low volume can mean big slippage!