#TradingPairs101 Trading pair is a term used to refer to two types of assets that are traded with each other in the market, usually a cryptocurrency and another type of asset, such as fiat currency or another coin. For example, the BTC/USDT pair indicates that users can buy or sell Bitcoin using USDT (Tether).

Each trading pair represents the exchange rate between the two assets, helping investors determine relative value and execute direct buy and sell transactions without needing to convert to an intermediary fiat currency. On exchanges, an asset can be paired with many other coins, creating different pairs such as ETH/BTC, BNB/USDT, or SOL/ETH.

Understanding trading pairs is very important for market participants, especially in choosing the direction of capital flow and identifying price trends. Additionally, selecting the right pair can help optimize transaction fees and avoid unnecessary intermediary steps. For professional investors, trading pairs are also tools for implementing arbitrage strategies, hedging, and managing risk more effectively.