#TradingPairs101 The Foundation of Every Trade

In the world of crypto trading, everything starts with a trading pair. If you don’t understand how trading pairs work, you’re likely to make costly mistakes. Let’s simplify it in this #TradingPairs101 post.

A trading pair shows the exchange rate between two assets. For example, in the ETH/BTC pair:

ETH is the base currency (the one you want to buy or sell)

BTC is the quote currency (the one you use to value the base)

So, if ETH/BTC = 0.06, that means 1 ETH is worth 0.06 BTC.

When using a Centralized Exchange (CEX), you’ll see a wide variety of trading pairs. Some pairs have deep liquidity and tight spreads (like BTC/USDT), while others may have low volume and high risk (like new altcoin pairs).

Key things to consider when choosing a trading pair:

Liquidity: Can your order be filled quickly and at a good price?

Volatility: Does the pair swing wildly or stay stable?

Fees: Trading across multiple pairs can increase your costs.

To trade efficiently and minimize losses, always understand the logic of trading pairs. It’s not just about buying and selling—it’s about pairing the right assets at the right time.