#TradingPairs101 If you’re new to cryptocurrency trading, one of the first terms you’ll encounter on Binance is “trading pairs.” Understanding trading pairs is essential for navigating the platform and making informed trades. Here’s a quick breakdown to get you started.

A trading pair consists of two different assets that can be exchanged for one another. On Binance, these pairs allow you to trade one cryptocurrency for another. For example, in the BTC/USDT pair, Bitcoin (BTC) is traded against Tether (USDT), a stablecoin pegged to the US dollar.

The first currency in the pair is called the base currency, and the second is the quote currency. In the BTC/USDT example, BTC is the base, and USDT is the quote. If BTC/USDT is priced at 60,000, it means one Bitcoin is worth 60,000 USDT.

Types of trading pairs on Binance

Crypto-to-stablecoin pairs

These are common for beginners. Examples include BTC/USDT, ETH/USDC, or BNB/BUSD. They help traders hedge against market volatility using stable assets.

Crypto-to-crypto pairs

These involve two cryptocurrencies, like ETH/BTC or ADA/BNB. They’re often used by more experienced traders who are comfortable navigating market fluctuations.

Fiat-to-crypto pairs

Binance also supports trading between fiat currencies and cryptocurrencies, such as EUR/BTC or USD/ETH, through Binance Convert or the Binance P2P platform.

How to choose a trading pair

Choosing the right trading pair depends on what assets you hold and what you want to acquire. If you hold USDT and want to buy Ethereum, you’d look for the ETH/USDT pair. Liquidity, spread, and trading volume are also key factors—higher volume pairs generally offer better prices and faster execution.

Trading pairs are the foundation of crypto trading on Binance. Whether you’re looking to trade Bitcoin for USDT or swap Ethereum for BNB, knowing how to read and use trading pairs is essential. Start by focusing on stablecoin pairs before exploring more complex crypto-to-crypto trades.