#tradingpairs101
💱 #TradingPairs101: What Are Trading Pairs?
A trading pair represents two different assets you can trade between on an exchange.
🔹 Format:
BASE/QUOTE
BASE currency: The asset you want to buy or sell.
QUOTE currency: The asset you’re using to buy the base.
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📌 Example:
BTC/USDT
BTC is the base currency.
USDT is the quote currency.
The price shows how much 1 BTC costs in USDT.
So if BTC/USDT = 30,000, then:
> 1 BTC = 30,000 USDT
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⚖️ Types of Trading Pairs
1. Crypto-to-Fiat
E.g., ETH/INR, BTC/USD
→ Buying crypto with government-backed currency.
2. Crypto-to-Stablecoin
E.g., BTC/USDT, ETH/DAI
→ Most common for price stability and trading flexibility.
3. Crypto-to-Crypto
→ Allows swapping one coin for another directly.
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🧮 How to Read & Use Pairs
Buying ETH/BTC → You're buying ETH using BTC.
Selling ETH/BTC → You're selling ETH to get BTC.
✔️ Always check:
The order book (for best prices)
The spread (difference between buy/sell prices)
