#TradingTypes101 What Are Trading Pairs & Why They Matter in Crypto
A trading pair in crypto is a combination of two assets you can trade between on an exchange. It tells you what you're buying and what you're paying with. For example:
đ BTC/USDT means you're trading Bitcoin (BTC) against Tether (USDT).
If you buy BTC/USDT â you're using USDT to buy BTC.
If you sell BTC/USDT â you're selling BTC to receive USDT.
â Why Trading Pairs Matter:
1. Access to Assets
Not all coins can be bought directly with fiat. Understanding pairs helps you find the right path (e.g., USDT â BTC â altcoin).
2. Price Clarity
Trading pairs show you the price of one asset in terms of another. For example, ETH/BTC tells you how many BTC it takes to buy 1 ETH.
3. Liquidity & Volume
Popular pairs (like BTC/USDT or ETH/USDT) have high liquidityâmeaning easier, faster, and more accurate trades.
4. Better Trading Strategy
Knowing how pairs work helps you avoid unnecessary conversions, save on fees, and plan entries/exits wisely.
Bottom Line:
Trading pairs are the foundation of every crypto trade. Mastering them helps you move efficiently through the market and make smarter decisions.
