What are trading pairs in cryptocurrency?
Trading pairs are the foundation of the cryptocurrency exchange process. When you want to buy a cryptocurrency, you do so against another currency. For example, in the pair BTC/USDT, you buy Bitcoin (BTC) using Tether (USDT).
🟢 Types of trading pairs:
Currency pairs against stablecoins (like USDT or BUSD): Suitable for reducing volatility.
Currency pairs against Bitcoin or Ethereum: Used for diversification and trading between cryptocurrencies.
Currency pairs against local currencies (like USD or EUR): Important when entering and exiting the fiat market.
🧠 Understanding how trading pairs work helps you to:
Identify trends better
Accurately compare the values of currencies
Choose the most suitable pair for your strategy
Practical example: If you expect the price of ETH to rise against USDT, you can enter the ETH/USDT pair to make a profit when the price increases.
