One of the basic concepts that every trader should understand:
Trading Pairs 💱
But what does it mean?
When you trade cryptocurrencies, you are actually not buying a currency individually, but rather swapping one currency for another. This is where the 'trading pair' comes into play.
For example, in the BTC/USDT pair, you are either buying Bitcoin using Tether (USDT) or vice versa.
🔹 The first currency (BTC) is called the base currency
🔹 The second currency (USDT) is called the quote currency
Understanding trading pairs helps you choose the most suitable trade, recognize trends, and accurately analyze charts. Additionally, some currencies cannot be purchased directly using your local currency or the dollar; instead, you first need to buy an intermediary currency like USDT or BNB.
💡 So, before you start trading, make sure you understand the pair you are dealing with, and pay attention to liquidity, spreads, and daily trading volume.
Have you started your first trade? Try analyzing the BTC/USDT pair and share your thoughts with us ✍️
