#TradingPairs101

A trading pair is a combination of two different assets that can be exchanged for one another on the exchange.

How does it work?

Each trading pair consists of two parts:

* Base Currency: This is the first asset in the pair (for example, BTC in the BTC/USDT pair). This is the currency that you buy or sell.

* Quote Currency: This is the second asset in the pair (for example, USDT in the BTC/USDT pair). This is the currency you buy the base currency with, or the one you receive when selling the base currency.

The liquidity of a specific trading pair is a key factor for effective trading. The greater the trading volume in a particular pair, the easier and quicker it is to execute an order.

Choosing the right trading pair is an important element of trading strategy.

On any cryptocurrency exchange, when you go to the trading section, you will see a long list of available trading pairs from which you can choose the one you need for the transaction.