#TradingPairs101 *Trading Pairs:*
A trading pair represents the exchange rate between two assets, such as currencies or cryptocurrencies. In a pair, one asset is bought or sold for another. For example, in the BTC/USDT pair, Bitcoin (BTC) is traded for Tether (USDT).
*Components:*
- *Base Asset*: The asset being bought or sold (BTC).
- *Quote Asset*: The asset used to price the base asset (USDT).
*Importance:*
- Enables trading and price discovery
- Reflects market sentiment and liquidity
- Allows for arbitrage and hedging opportunities
Understanding trading pairs is fundamental for navigating financial markets effectively.