#TradingPairs101 Here’s your intro to #TradingPairs101 — a fundamental concept in crypto and forex trading:
🔁 What Is a Trading Pair?
A trading pair represents two assets that can be exchanged for one another on an exchange.
Format: BASE/QUOTE
Example: BTC/USD = how many USD (quote) you need to buy 1 BTC (base).
💱 Base vs. Quote Currency
Base: The asset you’re buying or selling.
Quote: The asset you’re using to price the base.
🧠 Think: In ETH/USDT, you're buying ETH, priced in USDT.
⚖️ How It Works
If BTC/USD = 70,000, that means:
1 BTC = 70,000 USD
You need 70k USD to buy 1 BTC
🔥 Types of Pairs
1. Fiat Pairs
Involve traditional currency (USD, EUR, JPY).
Example: BTC/USD
2. Crypto-to-Crypto Pairs
Trade one crypto for another.
Example: ETH/BTC (Buy ETH using BTC)
3. Stablecoin Pairs
Cryptos paired with stablecoins like USDT or USDC.
Example: SOL/USDT
🧩 Why Trading Pairs Matter
Not all coins can be bought directly with fiat.
You may need to trade across multiple pairs to get the asset you want.
Example: USD → BTC → ALGO
📊 Choosing the Right Pair
Liquidity: Stick with high-volume pairs for better pricing and execution.
Fees: Some pairs have lower trading fees.
Spreads: Look for tight bid-ask spreads.
Want an explainer chart or how to navigate this on Binance, Coinbase, etc.?
