#TradingPairs101

What are trading pairs?

Trading pairs are the way in which the buying and selling of cryptocurrencies are organized on trading platforms. A trading pair consists of two currencies: the base currency that you wish to buy or sell, and the quote currency that is used to determine the value of the base currency.

## Structure of a Trading Pair

* **Base Currency**: This is the currency you want to buy or sell (appears first in the pair)

* **Quote Currency**: This is the currency used to evaluate the base currency (appears second in the pair)

* **Example**: In the trading pair BTC-USDT, Bitcoin is the base currency and Tether is the quote currency

## Main Types of Trading Pairs

### 1. Stablecoin Pairs

* **Definition**: Pairs in which the quote currency is a stablecoin linked to the US dollar or other currencies

* **Examples**: BTC-USDT, ETH-USDC, SOL-USDT

* **Benefits**: Ease of evaluating the value of cryptocurrencies against traditional currencies

### 2. Bitcoin Pairs

* **Definition**: Pairs in which Bitcoin is the quote currency

* **Examples**: ETH-BTC, XRP-BTC, ADA-BTC

* **Benefits**: Helps in measuring the performance of altcoins compared to Bitcoin