#TradingPairs101
Trading pairs represent two currencies that can be exchanged on a trading platform.
For example, BTC/USDT means trading Bitcoin against Tether.
Understanding these pairs is essential for interpreting prices and making correct trades.
Traders prefer high liquidity pairs, such as ETH/USDT, for their stability and ease of execution.
On the other hand, low liquidity or rare pairs may involve greater volatility and risks.
Additionally, knowing whether you are buying or selling the underlying asset is crucial for strategies such as arbitrage or technical analysis.
Mastering pairs is a fundamental step for any cryptocurrency trader.