#TradingPairs101 – Let’s break down the basics of trading pairs in crypto:
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🔁 What Are Trading Pairs?
A trading pair allows you to trade one cryptocurrency for another. Think of it like a currency exchange – BTC/ETH means you're trading Bitcoin for Ethereum, or vice versa.
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💱 Common Types of Pairs
1. Crypto-to-Crypto (C2C):
Used to swap one crypto for another without using fiat.
2. Crypto-to-Fiat (C2F):
Example: BTC/USD, ETH/EUR
Lets you convert crypto into traditional currency or vice versa.
3. Stablecoin Pairs:
Example: ETH/USDT, BTC/USDC
Helpful in volatile markets to hedge or take profits.
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📊 How to Read a Pair?
Example: BTC/USDT
Base currency: BTC (the one you’re buying or selling)
Quote currency: USDT (used to price the base)
If BTC/USDT = 67,000, it means 1 BTC = 67,000 USDT.
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✅ Why Trading Pairs Matter
Liquidity: More popular pairs (BTC/USDT, ETH/USD) = better execution and less slippage.
Arbitrage Opportunities: Price discrepancies between pairs or exchanges.
Strategy Matching: Certain trading strategies require specific pairs (e.g., using stablecoins for scalping).
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⚠️ Pro Tips
Always check spread and fees before trading.
Be aware of impermanent loss in liquidity pools involving pairs.
Understand correlation: Some assets move together, others don’t.
