#TradingPairs101 Here's a distilled yet comprehensive breakdown of trading pairs:
Trading Pairs 101
Core Definition:
A trading pair (Base/Quote, e.g., `BTC/USDT`) lets you exchange one asset for another.
Base: Asset you buy/sell* (e.g., `BTC` in `BTC/USDT`).
Quote: Asset used to value* the base (e.g., `USDT`, a USD-pegged stablecoin).
How It Works:
1. Price: Shows how much quote is needed for 1 unit of base.
Example: `WTC/USD = $0.0036` → 1 Waltoncoin costs $0.0036.
2. Liquidity: High volume = easier trades. Low volume (e.g., WTC’s $4.48 daily volume) causes:
Slippage: Price shifts during execution.
Wide Spreads: Big gaps between buy/sell orders.
3. Order Types:
Market Order: Instant trade at current price.
Limit Order: Set your price (e.g., "Buy ETH if drops to $1,500").
Why Pair Choice Matters:
Volatility: `BTC` pairs swing more; `stablecoin` pairs (e.g., `ETH/USDC`) reduce risk.
Access: Tokens like WTC may only trade on niche exchanges (delisted from major platforms).
Fees: Often lower for crypto/crypto pairs vs. fiat pairs.
Key Risks:
⚠️ Illiquid Pairs: Low volume → high slippage (e.g., trying to sell $1k of WTC could crash its price).
⚠️ Delistings: Inactive tokens (like WTC) vanish from exchanges stranding funds.
Pro Tips:
✅ Prioritize volume: Avoid pairs under $100k daily volume.
✅ Use limit orders in volatile markets.
✅ Stablecoin pairs (`ETH/USDC`) for stability during swings.
TL;DR:
Trading pairs are the "engine" of exchanges: Base is what you trade, Quote sets its value. Choose liquid, active pairs to avoid slippage and delisting risks. Always verify volume!
(Based on real-time data: WTC/USD volume ~$4.48; last trade 25 days ago).