#TradingPairs101 The **pair trading** in cryptocurrencies consists of exchanging one digital asset for another within a specific pair, such as BTC/USDT or ETH/BTC. The first asset in the pair is the one being bought or sold, and the second is the base currency with which its value is measured. For example, in the BTC/USDT pair, Bitcoin is bought or sold using Tether (USDT). There are **crypto-fiat** pairs (like ETH/USD) and **crypto-crypto** pairs (like ADA/BTC). Analyzing pairs correctly allows traders to identify arbitrage opportunities, take advantage of volatility, or hedge against market movements. Traders choose pairs based on their liquidity, volatility, and strategy. It is crucial to understand the relative behavior between the two currencies to make informed decisions in this type of trading.