#TradingPairs101

📘 #Trading_Pairs_Basics | TradingPairs101

💡 What are trading pairs?

A trading pair is a quote of two different currencies, where one can be exchanged for the other on a trading platform.

Example:

BTC/USDT = Trading Bitcoin against Tether (a stablecoin pegged to the dollar).

ETH/BTC = Trading Ethereum against Bitcoin.

🔁 The first asset (on the left) is what you are buying or selling, and the second (on the right) is the currency you use to pay or receive.

🔄 Types of trading pairs

Cryptocurrency pairs against traditional currencies (Fiat)

Examples: BTC/USD — ETH/EUR

Trading cryptocurrencies against the dollar or euro.

Cryptocurrency pairs against each other

Examples: ETH/BTC — SOL/ETH

Trading between cryptocurrencies directly without the need to convert to traditional currencies.

Stablecoin pairs

Examples: BTC/USDT — ETH/USDC

Useful for reducing market volatility.

📊 Why are trading pairs important?

Liquidity: Popular pairs (like BTC/USDT) feature high trading volumes, which means faster execution of trades and reduced price spreads.

Arbitrage opportunities: Price differences between platforms or different pairs can be exploited.

Investment strategies: Choosing the right pair affects your exposure to each asset.