#TradingPairs101

**Trading Pair 101: The Building Blocks of Exchange Trading**

A trading pair represents two different assets you can exchange directly for each other on a trading platform (like a crypto exchange). It's written as `Asset1/Asset2` (e.g., `BTC/USD`, `ETH/BTC`).

* **How it Works:** The price of `Asset1` is quoted *in terms of* `Asset2`. If `BTC/USD = 104,000`, it means 1 Bitcoin costs 104,000 US Dollars.

* **The Trade:** Buying `BTC/USD` means you spend USD to acquire Bitcoin. Selling means you give up Bitcoin to receive USD.

* **Examples:** Major pairs like `BTC/USDT` or `ETH/USD` involve stablecoins or fiat. Cross-pairs like `LTC/BTC` trade crypto directly against each other.

* **Why it Matters:** Each pair has its own market, price, liquidity, and trading volume. Choosing the right pair is crucial for your strategy, cost (fees/spread), and risk exposure. Always know which assets you're swapping!

**Key Takeaway:** Trading pairs define *what* you're buying/selling and *what* you're using to pay/receive.