#TradingPairs101 The Key to Spot & Margin Trading ๐
Every crypto trade involves a trading pairโbut how do they work, and why do they matter?
๐น Base currency vs. Quote currency: In BTC/USDT, BTC is the asset you're buying/selling, while USDT sets the price.
๐น Fiat pairs (BTC/USD, ETH/EUR): Ideal for converting crypto to real-world money.
๐น Crypto pairs (ETH/BTC, BNB/SOL): Great for swapping assets without touching fiat.
๐น Stablecoin pairs (BTC/USDT, ETH/USDC): Reduce volatility while keeping trades liquid.
๐น Cross vs. isolated margin pairs: Different risk levels when borrowing funds for leverage trades.
๐ Smart traders analyze liquidity and price movements across pairs to maximize gains and minimize risks. Which trading pairs do you use most?