#TradingPairs101 Trading pairs on a cryptocurrency exchange are the exchange ratio between two currencies, where the first currency is called the base currency, and the second is called the quote currency. For example, in the pair BTC/USDT, the base asset is Bitcoin (BTC), and the quoted currency is the stablecoin USDT. The price of the pair shows how many units of the quote currency are needed to buy one unit of the base currency.

The main types of trading pairs:

Crypto-Crypto — exchange between two cryptocurrencies (for example, BTC/ETH).

Crypto-Fiat — cryptocurrency and fiat currency (for example, BTC/USD).

Crypto-Stablecoin — cryptocurrency and stablecoin (for example, BTC/USDT).

Trading pairs allow traders to buy one currency for another, speculate on price changes, and choose convenient options for trading and investing. The more trading pairs on the exchange, the broader the trading opportunities.

For convenience, currencies are designated by tickers (BTC, ETH, USDT, etc.). The choice of pair depends on liquidity and trading volume to ensure that transactions are executed quickly and with minimal losses.

Thus, trading pairs are the foundation of cryptocurrency trading, ensuring the exchange and pricing of assets on the exchange.