#TradingPairs101 is the basic topic in the world of cryptocurrency trading and finance, which refers to trading pairs available on exchanges. Here is a quick and clear introduction:

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🔄 What is a trading pair?

A trading pair is a set of two assets that can be traded against each other on an exchange. It shows how much of one currency can be purchased with another.

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📌 Example:

BTC/USDT

• This means you are trading Bitcoin (BTC) against Tether (USDT).

• If the price of BTC/USDT = 70,000, it means that 1 BTC costs 70,000 USDT.

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🛠 Types of pairs:

1. Fiat ↔ Crypto

for example, BTC/USD, ETH/EUR

• You buy cryptocurrency with traditional currency.

2. Crypto ↔ Crypto

for example, ETH/BTC, SOL/USDT

• You exchange one cryptocurrency for another.

3. Stablecoin ↔ Crypto

for example, BTC/USDC, AVAX/DAI

• You use a stablecoin (e.g., USDT) as a safer medium of exchange.

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🧠 Why is this important?

• Liquidity – more pairs mean more trading opportunities.

• Arbitrage profits – price differences in various pairs can yield profit.

• Understanding the market – knowledge of pairs allows for more effective market analysis.

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💡 Pro tip:

Always look at which currency is the base and which is the quoted:

• In the pair ETH/BTC:

• ETH is the base currency

• BTC is the quoted currency

• You buy/sell ETH in exchange for BTC.

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