#TradingPairs101

A trading pair is a combination of two different assets that can be exchanged for one another on an 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 you are buying or selling.

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

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

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