#TradingPairs101

Trading pairs are combinations of two different assets that can be exchanged in a market, commonly seen in cryptocurrency and forex trading. Each pair represents a trade between a base asset and a quote asset. For example, in the BTC/USDT pair, Bitcoin (BTC) is the base asset, and Tether (USDT) is the quote asset. The pair shows how much of the quote asset is needed to buy one unit of the base asset. Trading pairs allow users to directly exchange one asset for another without converting to fiat currency. They also indicate market demand and liquidity for those specific assets. Understanding trading pairs is essential for making informed trades, identifying arbitrage opportunities, and managing risk in fast-moving financial markets.