#TradingPairs101
How do trading pairs work?
š¹ Buy/Sell: When you buy BTC/ETH, you're buying Bitcoin and selling Ethereum.
š¹ Price quotes: The price represents how much of the quote currency (e.g., ETH) you need to buy one unit of the base currency (e.g., BTC).
Types of trading pairs:
š¹ Fiat pairs: Crypto/fiat pairs (e.g., BTC/USD).
š¹ Crypto pairs: Crypto/crypto pairs (e.g., ETH/BTC).
š¹ Stablecoin pairs: Pairs involving stablecoins (e.g., USDT/USDC).
Tips for traders:
š¹ Understand the pair dynamics: Know how the base and quote currencies interact.
š¹ Monitor pair liquidity: Ensure sufficient liquidity to avoid slippage.
š¹ Diversify your trades: Trade multiple pairs to manage risk.
