#TradingPairs101 **Trading Pairs 101: A Beginner’s Guide**
Trading pairs are the foundation of cryptocurrency and forex markets, representing the exchange rate between two assets. A pair consists of a **base currency** (the first asset) and a **quote currency** (the second asset). For example, in **BTC/USDT**, BTC is the base, and USDT is the quote—showing how much USDT is needed to buy 1 BTC.
Pairs are categorized into:
- **Major Pairs** (e.g., BTC/USDT, ETH/BTC) – High liquidity, low spreads.
- **Minor Pairs** (e.g., XRP/ETH) – Less liquidity, higher volatility.
- **Fiat Pairs** (e.g., BTC/USD) – Traditional currency trading.
Understanding trading pairs helps traders analyze price movements, liquidity, and market trends. Always check fees, spreads, and volume before trading!