#TradingPairs101

🔹 What Are Trading Pairs?

A trading pair shows two cryptocurrencies (or crypto + fiat) that can be traded against each other on an exchange.

Example:

BTC/USDT → You’re trading Bitcoin against Tether (a stablecoin).

• Buying BTC with USDT

• Selling BTC for USDT

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🔹 How to Read a Trading Pair

BASE / QUOTE

• Base: The first currency (what you’re buying/selling).

• Quote: The second currency (what you’re paying with or receiving).

Example:

• ETH/BTC = Price of 1 ETH in BTC

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🔹 Types of Trading Pairs

1. Crypto-to-Crypto (e.g., ETH/BTC, SOL/USDC)

2. Crypto-to-Fiat (e.g., BTC/USD, ETH/EUR)

3. Stablecoin Pairs (e.g., BTC/USDT, ETH/DAI)

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🔹 Why It Matters

• More pairs = more flexibility

• Popular pairs have more liquidity (lower slippage, better prices)

• Some tokens are only tradable through “routes” (e.g., XYZ → ETH → USDT)