#TradingPairs101

In the world of trading, whether in cryptocurrencies or stocks, the concept of Trading Pairs is essential for understanding how assets are exchanged.

What are Trading Pairs?

Trading pairs show the relationship between two assets that are traded against each other. For example, in the BTC/USDT pair, this means you are trading Bitcoin for Tether. That is, you are buying or selling Bitcoin using Tether as a reference currency.

2. Crypto-to-Stablecoin pairs – Crypto-to-Stablecoin

For example: BTC/USDT or ETH/USDC

These help hedge against price volatility.

3. Crypto-to-Fiat pairs – Crypto-to-Fiat

For example: BTC/USD or ETH/EUR

These are used when entering or exiting the market with cash.

Why are Trading Pairs important?

They facilitate understanding the value of a particular asset compared to another.

They allow investors to choose the best path for converting assets.

They provide a better understanding of price movements in the markets.