#TradingPairs101 In its essence, a cryptocurrency trading pair is a combination of two different cryptocurrencies or a cryptocurrency and fiat currency (such as USD or EUR), which can be exchanged for each other on a cryptocurrency exchange. It primarily shows the value of one asset relative to another.

How do they work?

* Base and Quote Currency: Each trading pair consists of two parts:

* Base Currency (first in the pair): This is the asset you are buying or selling.

* Quote Currency (second in the pair): This is the asset you use to make the transaction, and the price of the base currency is expressed in it.

* Example: BTC/USDT

* BTC (Bitcoin) is the base currency.

* USDT (Tether, a stablecoin pegged to USD) is the quote currency.

* If the price for BTC/USDT is 60,000, it means that 1 Bitcoin costs 60,000 Tether. You will use 60,000 USDT to buy 1 BTC, or you will sell 1 BTC to receive 60,000 USDT.

Types of Trading Pairs:

There are two main categories of cryptocurrency trading pairs:

* Crypto-Crypto Pairs: This involves exchanging one cryptocurrency directly for another.

* Examples: BTC/ETH (Bitcoin for Ether), ETH/BNB (Ether for Binance Coin), LTC/DOGE (Litecoin for Dogecoin).