#TradingPairs101 Trading Pairs 101

A trading pair represents two different assets that can be exchanged for each other on an exchange. The first asset listed is the base currency, and the second is the quote currency. For example, in BTC/USD, Bitcoin (BTC) is the base currency, and US Dollar (USD) is the quote currency. This means you are buying or selling Bitcoin using US Dollars.

Understanding trading pairs is crucial because it dictates the exchange rate and the assets involved in a transaction. Major pairs like EUR/USD (Euro/US Dollar) or BTC/USDT (Bitcoin/Tether) offer high liquidity, while exotic pairs might have wider spreads and lower trading volumes. Always know what you're buying with what, and what you're selling for what!