#TradingPairs101 Trading pairs are combinations of two types of assets used to buy and sell each other on the exchange. In the cryptocurrency market, a common example is BTC/USDT, meaning you use USDT to buy or sell BTC.
A trading pair helps determine the relative value of one asset compared to another. There are two main types:
Pairs with fiat currency like BTC/USD, ETH/EUR.
Crypto-crypto pairs like ETH/BTC, SOL/USDT.
Choosing the right trading pair affects fees, liquidity, and the ability to match orders. Some popular pairs have high liquidity, while less commonly used pairs may be harder to trade.
Understanding trading pairs helps investors determine market direction and build strategies that align with their goals.