#TradingPairs101 #TradingPairs101

A trading pair refers to two assets that can be traded against each other on an exchange, commonly seen in cryptocurrency and forex markets. For example, in the BTC/ETH pair, you're trading Bitcoin (BTC) for Ethereum (ETH). The first asset (BTC) is the base currency, and the second (ETH) is the quote currency, which tells you how much of the quote you need to buy one unit of the base. Trading pairs allow users to swap between different assets without converting to fiat. In crypto, popular pairs include BTC/USDT, ETH/BTC, and SOL/USDC. Liquidity in each pair affects the ease and price of trades—high liquidity means tighter spreads and faster execution. Understanding trading pairs helps you spot arbitrage opportunities, manage risk, and optimize portfolio moves. Whether you're a beginner or a seasoned trader, knowing how pairs work is essential for navigating markets confidently.