Understanding Trading Pairs #TradingPairs101

Trading pairs show how one cryptocurrency can be exchanged for another, like BTC/USDT or ETH/BTC. The first currency is the asset you trade, while the second is the pricing currency. Major pairs like BTC/USD offer high liquidity, meaning easier trades with lower slippage. Minor or exotic pairs, like altcoin/altcoin combinations, often have less liquidity and higher volatility.

Choosing the right pair depends on strategy—stablecoin pairs reduce volatility risk, while BTC or ETH pairs help assess an altcoin’s performance against dominant assets. Always check trading volume and spreads before executing trades for better efficiency.