#TradingPairs101 To trade effectively, understanding trading pairs is essential. A trading pair consists of two types of assets priced relative to each other, for example: BTC/USDT.

The first asset (BTC) is the "base currency," and the second asset (USDT) is the "quote currency." The price of the pair indicates how much quote currency is needed to buy one unit of the base currency. For example, if BTC/USDT is 60,000, it means 1 BTC is worth 60,000 USDT.

Trading pairs can be classified into fiat-to-crypto (USD/BTC), crypto-to-crypto (ETH/BTC), or fiat-to-fiat (EUR/USD). Each type has its own characteristics and volatility levels, which directly affect your trading strategy. Mastering this helps you make smarter decisions.