💱 #TradingPairs101 – What are Trading Pairs?
If you have ever accessed an exchange like Binance, you have certainly seen pairs like BTC/USDT, ETH/BTC, or BNB/USDC. But after all, what are these trading pairs?
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🔍 What is a Trading Pair?
A trading pair represents two currencies that can be traded against each other. The first asset in the pair is what you are buying or selling, and the second is the base currency used for quoting.
➡️ Example:
In the pair BTC/USDT, you are trading Bitcoin (BTC) using Tether (USDT).
If buying: you are exchanging USDT for BTC.
If selling: you are exchanging BTC for USDT.
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📈 Why are trading pairs important?
1. Diversification of trades
It allows you to trade different crypto assets without always needing to convert to fiat currency.
2. Taking advantage of opportunities
By understanding the available pairs, you can engage in arbitrage, swing trading, or simply look for better rates and liquidity.
3. Greater control over profits
You choose which currency you want to accumulate gains in (e.g., BTC or USDT), depending on your strategy.
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🎯 Quick Tip:
The most liquid and traded pairs tend to have lower slippage and better order execution. Always observe the trading volume before starting a trade.
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🔒 Conclusion:
Understanding trading pairs is essential for navigating exchanges securely and strategically. Start by analyzing the main pairs and expand your knowledge as your journey evolves.
