#TradingPairs101 What is a Trading Pair?

Essentially, a trading pair is a quotation of two different assets, where the value of one asset is expressed in terms of the other. Basically, it tells you how much of the second asset you need to buy or sell one unit of the first asset.

Components of a Trading Pair

Every trading pair consists of two parts:

* Base Asset (or Base Currency): This is the first asset that appears in the pair. It is the asset you are buying or selling.

* Quote Asset (or Quote Currency): This is the second asset listed. It is the currency or asset you use to buy or sell the base asset.

The format is typically displayed as BASE/QUOTE.

* BTC/USDT: BTC (Bitcoin) is the base, USDT (Tether, a stablecoin pegged to the US Dollar) is the quote. If the price is $68,000, it means that 1 Bitcoin is worth $68,000 USDT.

* ETH/BTC: ETH (Ethereum) is the base, BTC (Bitcoin) is the quote. This tells you how much Bitcoin you need to buy one Ethereum.