#TradingPairs101
#TradingPairs101 š
Ever seen BTC/USDT or ETH/BTC on exchanges like Binance and wondered what it means?
Letās break it down š
š What is a Trading Pair?
A trading pair lets you swap one asset for another. It shows the two currencies you're trading between.
šŖ Example:
BTC/USDT = You're buying or selling Bitcoin using Tether (USDT).
ETH/BTC = You're trading Ethereum for Bitcoin (or vice versa).
š Base vs Quote Currency
Base currency (left): The asset you're buying or selling.
Quote currency (right): The asset you're using to price or buy the base.
š” Tip: If you want to buy BTC with USDT, look for the BTC/USDT pair.
šÆ Why It Matters:
Choosing the right pair ensures you're using the correct route to enter or exit a positionāmaximizing efficiency and minimizing fees.