#TradingPairs101
Trading Pairs are the essence of trading in the cryptocurrency market and are essential for understanding how Binance works.
What are Trading Pairs?
Simply put, a trading pair is a pair of digital assets or a cryptocurrency and a fiat currency that can be exchanged with each other. Trading pairs are typically expressed in the format "base currency quote currency."
The base currency is the first currency in the pair. This is the currency you buy or sell.
The quote currency is the second currency in the pair; this is the currency you use to determine the price of the base currency or to pay for it.
Examples of common trading pairs:
BTC/USDT: This means you are trading Bitcoin (BTC) for Tether (USDT). If the price of this pair is 70,000, it means that 1 Bitcoin is equal to 70,000 Tether.
If you bought this pair, you are buying BTC using USDT.
If you sold this pair, you are selling BTC for USDT.
ETH/BTC: This means you are trading Ethereum (ETH) for Bitcoin (BTC). If the price of this pair is 0.05, it means that 1 Ethereum is equal to 0.05 Bitcoin.
BNB/USDT: You are trading Binance Coin (BNB) for Tether (USDT).
SOL/USD: You are trading Solana (SOL) for US Dollar (USD), it may be available on some platforms as SOL/USDT where USDT is pegged to the dollar.
How do trading pairs work on Binance?
Trading pairs on Binance operate on the principle of supply and demand just like traditional currency markets.
