A trading pair represents two assets that can be exchanged with each other on an exchange. It is expressed as A/B, where A is the base asset and B is the quoted asset. For example, in BTC/USDT, you are buying BTC using USDT or selling BTC for USDT.

The pairs are divided into:

• Pairs with stablecoins: like USDT, USDC, or BUSD. They are the most used to measure real value in 'stable' currency.

• Crypto to crypto pairs: like ETH/BTC or SOL/ETH. They are used for rotations between altcoins or arbitrage strategies.

• Fiat/crypto pairs: like BTC/USD or ETH/EUR. Common in regulated exchanges with fiat on-ramps.

Choosing the right pair affects volume, liquidity, and trading costs. It can also imply indirect exposure to the quoted asset. For example, if you trade in a pair against BTC and BTC falls, your trade may be affected even if your altcoin didn't move. #TradingPairs101