#TradingPairs101
๐ #TradingPairs101 | What are trading pairs in the world of crypto? ๐ฑ
When you enter a trading platform, you will find assets traded in the form of "pairs", but what does it mean? ๐ค
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๐ก What is a trading pair?
It is a comparison between two digital assets where one is used to purchase the other.
๐ Example:
BTC/USDT = How many USDT do you need to buy 1 BTC?
ETH/BTC = How much BTC do you need to buy 1 ETH?
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โณ๏ธ Types of trading pairs:
1๏ธโฃ Pairs against stablecoins:
Like BTC/USDT or ETH/FDUSD โ the most commonly used due to price stability ๐ต
2๏ธโฃ Crypto to Crypto pairs:
Like ETH/BTC or SOL/BNB โ used to swap one asset for another directly ๐
3๏ธโฃ Pairs against local currencies (in P2P platforms):
Like BTC/SAR or USDT/EGP โ important when converting to local currencies ๐
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๐ Choosing the right pair helps you to: โ๏ธ Analyze price movement accurately
โ๏ธ Manage capital efficiently
โ๏ธ Reduce spreads
