#TradingPairs101
A hashtag or term that refers to trading pairs in digital currencies.
It is considered the foundation #TradingPairs101
in the trading world, whether in spot trading, futures, or holding when trading cryptocurrencies, understanding "trading pairs" is essential.
In short, a trading pair means a pair of assets that can be traded against each other. Just as you buy goods with cash, you buy one cryptocurrency with another, or buy a stock with fiat currency.
A trading pair consists of a base currency and a quote currency. For example, in the BTC/USDT pair, Bitcoin (BTC) is the base currency, and its value is shown against Tether (USDT), which is the quote currency. When you see the BTC/USDT price at 104,000, it means that 1 Bitcoin is equal to 104,000 US dollars (or 104,000 USDT).
The most common pairs are those that contain stablecoins like USDT or USDC, which provide a stable reference point for evaluating volatile assets. Understanding how trading pairs work allows you to analyze market dynamics better and identify buying and selling opportunities based on the value of one asset against another.
