#TradingPairs101



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June 6th

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Basic concepts about cryptocurrency pairs: how they work

A currency pair shows the value of one cryptocurrency in relation to another, allowing them to be exchanged directly. For example, in the BTC pair BTC/USDT, you exchange Bitcoin for Tether. If you buy BTC/USDT, you spend USDT to obtain BTC; if you sell, you convert BTC to USDT.

Currency pairs eliminate the need to convert everything to fiat currency. They facilitate the transfer between assets, especially when one currency is more volatile or trending. Some pairs use stablecoins (like USDT or BUSD) to reduce risk, while others use altcoins or major tokens (like ETH/BTC) for strategic swaps.

Always choose pairs based on your trading goals, liquidity, and volatility. Not all assets are paired directly, so you may need to exchange a base currency like USDT or BTC.