#TradingPairs101
🔁 **#TradingPairs101 – The Basics of Trading Pairs**
#### 📌 What’s a Trading Pair?
A **trading pair** shows the exchange rate between two assets. It tells you how much of one asset is needed to get one unit of another.
#### 💡 Example:
* **BTC/USDT = 65,000**
This means **1 Bitcoin** is worth **65,000 USDT**.
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#### 🧭 Common Types of Pairs
1. **Crypto/Fiat Pairs**
* E.g., **ETH/USD**, **BTC/GBP**
* Trading crypto against traditional currencies.
2. **Crypto/Crypto Pairs**
* E.g., **ETH/BTC**, **SOL/ETH**
* Useful for swapping between cryptocurrencies.
3. **Fiat/Fiat Pairs (Forex)**
* E.g., **EUR/USD**, **JPY/GBP**
* Mostly seen in traditional currency markets.
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#### 🧐 Why It’s Important
* **Defines your trading options**
* **Impacts how you track prices**
* **Enables easier portfolio diversification**
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#### 🛒 How Trading Pairs Work
* **Base Asset**: First in the pair (e.g., BTC in BTC/USDT) — what you are buying or selling.
* **Quote Asset**: Second in the pair (e.g., USDT in BTC/USDT) — what you pay or receive.
**So if you buy BTC/USDT, you’re spending USDT to buy BTC.**
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#### ⚙️ Pro Tips
* Stick to **high-volume pairs** for better liquidity.
* Watch out for **fees** and **price spreads**.
* Understand the **value movement of both assets** in the pair.
