๐ #TradingPairs101 โ What Are You *Really* Trading? ๐น
Ever seen BTC/USDT or ETH/BTC and wondered what it means?
Hereโs your quick crash course on **trading pairs** ๐ง ๐
---
๐น **What Is a Trading Pair?**
A trading pair lets you trade one asset for another.
Example: **BTC/USDT**
โก๏ธ You're trading Bitcoin **against** Tether (USDT)
โก๏ธ Price = how much USDT you need to buy 1 BTC
---
๐ **Base vs. Quote Currency**
- **Base = First** asset (e.g., BTC)
- **Quote = Second** asset (e.g., USDT)
๐งฎ Price shows how much *quote* is needed for 1 unit of *base*
Think:
`BTC/USDT = 67,000` โ You need 67,000 USDT for 1 BTC
---
๐ฑ **Types of Trading Pairs**
1. **Crypto/Stablecoin** โ BTC/USDT, ETH/USDC
โ Great for price clarity & stability
2. **Crypto/Crypto** โ ETH/BTC, SOL/ETH
โ Ideal for altcoin swing traders
3. **Fiat/Crypto** โ EUR/BTC, USD/ETH
โ Entry/exit to traditional currency
---
๐ง **Why It Matters:**
โ Helps you understand what youโre *buying vs selling*
โ Guides your chart analysis
โ Critical for setting correct orders (especially in volatile markets)
---
โ ๏ธ Pro Tip: Always double-check which asset youโre buying and selling.
Confuse base/quote โ you might *short instead of long*, or worse!
---
Do you prefer trading against stablecoins or BTC?
Drop your favorite pair below! ๐
#CryptoTrading #Binance #Altcoins #DYOR #CryptoBasics #Web3
