#TradingPairs101 A Beginner's Guide 🏞️

Understanding Trading Pairs

A trading pair represents the exchange rate between two assets, such as currencies or crypto currencies.

In trading, one asset is exchanged for another.

Key Concepts

- Base asset: The first asset in the pair, which is being bought or sold.

- Quote asset: The second asset, used to quote the price of the base asset.

- Exchange rate: The price of the base asset in terms of the quote asset.

Example

In the BTC/USD pair, Bitcoin (BTC) is the base asset, and the US dollar (USD) is the quote asset. If BTC/USD is 30,000, one Bitcoin can be exchanged for 30,000 US dollars