#TradingPairs101 What is a Trading Pair?
A trading pair in cryptocurrency (or any financial market) represents two different assets that can be traded against each other. It shows how much of one asset you need to exchange for another.
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🔁 Example of a Trading Pair
Let’s say you see the trading pair:
BTC/ETH
This means you can trade Bitcoin (BTC) for Ethereum (ETH).
If the price is 1 BTC = 15 ETH, then to buy 1 BTC, you need to pay 15 ETH.
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💱 Base and Quote Currency
Each trading pair is made of:
Base Currency: The first asset in the pair (e.g., BTC in BTC/ETH).
Quote Currency: The second asset (e.g., ETH in BTC/ETH).
So in BTC/ETH, BTC is what you are buying/selling, and ETH is what you're using to measure its value.
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🏦 Types of Trading Pairs
1. Crypto/Crypto Pairs
Used to trade one cryptocurrency for another.
2. Crypto/Fiat Pairs
Example: BTC/USD, ETH/EUR
Allows you to trade crypto for traditional (fiat) currency.
