#TradingPairs101

When trading on a cryptocurrency exchange, one of the most important concepts is trading pairs. They represent two currencies that can be exchanged for each other, for example, BTC/USDT or ETH/BUSD. The first currency in the pair is called the base currency, and the second is the quote currency. The price is displayed in how many units of the quote currency are needed to purchase one unit of the base currency.

Choosing the right trading pair affects the efficiency of the trade, fees, and liquidity. For example, if you have USDT and want to buy Ethereum, you need to find the pair ETH/USDT. If you are trading a rarely used coin, it may not be available in a pair with USDT, but it may be available through BTC.

It is important to study trading volumes, spreads, and activity for a specific pair to make informed decisions.