#TradingPairs101 Trading Pairs 101
Welcome to the world of trading pairs – where the real game begins in the world of cryptocurrencies and foreign currencies (Forex). Let me explain it to you in a simplified and straightforward way, without any fluff.
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✅ What is a trading pair?
A trading pair simply means that you are buying a currency using another currency.
For example:
BTC/USD = you buy or sell Bitcoin against the dollar
ETH/BTC = you buy or sell Ethereum against Bitcoin
It's like asking: "How many apples can I buy for a dinar?" – but here instead of apples and dinars, we are talking about digital currencies or real currencies.
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🧠 How do you understand the formula?
Each pair is written in the form:
BASE / QUOTE
Base currency: the one you are buying or selling
Quote currency: the one you pay/receive with