#TradingPairs101 Trading Pairs 101

In the world of trading, a trading pair refers to two assets that can be exchanged directly with each other on an exchange platform, such as one cryptocurrency and another cryptocurrency, or a cryptocurrency and a fiat currency.

What is a Trading Pair?

A trading pair is made up of two currencies or assets, for example: BTC/USDT.

The first asset (BTC) is the base currency.

The second asset (USDT) is the quoted or reference currency.

The price of the pair indicates how much of the quoted currency (USDT) is needed to purchase one unit of the base currency (BTC).

Practical Example

If the BTC/USDT pair has a price of 30,000, it means that 1 BTC costs 30,000 USDT.

You can buy BTC using USDT or sell BTC to receive USDT.

Importance of Trading Pairs

They facilitate direct conversion between different assets without the need to go through an intermediary currency.

They allow traders to take advantage of arbitrage opportunities and diversify their strategies.

The availability and liquidity of trading pairs affect the ease and speed with which trades can be executed.