#TradingPairs101 : What is Pair Trading in Crypto? 💱
When you open an exchange app like Binance, you often see terms like BTC/USDT, ETH/BTC, or SOL/BNB. These are called trading pairs. Let's understand the basics! 👇
🔹 What Is a Trading Pair?
A trading pair is two assets that can be exchanged for one another in the market. For example, BTC/USDT means you are exchanging Bitcoin for USDT, or vice versa.
🔹 Types of Trading Pairs:
1. Crypto vs Stablecoin
Example: BTC/USDT, ETH/USDC
✅ Suitable for measuring the value of crypto against "digital dollars"
✅ Stable, ideal for beginners
2. Crypto vs Crypto
Example: ETH/BTC, SOL/BNB
✅ Used if you want to exchange between crypto assets directly
❌ More volatile, suitable for experienced traders
3. Fiat vs Crypto
Example: BTC/IDR (if available in local exchange)
✅ Useful for directly converting to fiat money
💡 Tips:
Always understand the pair you choose! Wrong pair = wrong strategy.
Choose pairs with high volume & low spread for maximum efficiency!