#TradingPairs101 What Are Trading Pairs and How Do They Work?

If you're new to crypto trading, one of the first things you’ll encounter is the concept of trading pairs. Let’s explore this essential topic in today’s #TradingPairs101.

A trading pair represents two different assets that can be traded against each other on an exchange. For example, BTC/USDT is a pair where Bitcoin is traded against Tether (a stablecoin). If you’re buying BTC with USDT, you’re trading within that pair.

There are two main categories of trading pairs:

Crypto-to-Fiat pairs (e.g., BTC/USD, ETH/USDT)

Crypto-to-Crypto pairs (e.g., ETH/BTC, SOL/BNB)

Why do trading pairs matter?

Because they determine what assets you can trade directly. If you hold a token that doesn’t have a direct trading pair with your preferred coin or fiat, you might need to do multiple trades to get there—often paying more in fees.

Smart traders always check:

Pair availability

Liquidity of the pair

The base and quote asset (which is being bought/sold)

Understanding trading pairs gives you the flexibility to plan your trades better and avoid unnecessary conversion steps.