#TradingPairs101 🧭 What are trading pairs?
In cryptocurrencies, they represent two assets that can be exchanged directly (like BTC/USDT, where you are buying BTC using USDT, or vice versa).
In forex, it's the same concept: a currency pair, such as EUR/USD, where EUR is the "base" and USD is the "quote" — it indicates how many USD you need to buy 1 EUR.
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Why is this important?
1. Clear definition of what is being traded: there is always one asset being bought and another being sold.
2. Liquidity and volatility: popular pairs (like BTC/USDT or EUR/USD) are more liquid, with lower spreads.
3. Differentiated strategy: pairs with stablecoins offer more stability, while pairs between crypto assets (ETH/BTC, for example) bring more potential but more risk.
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Types of pairs
Major pairs: include fiat or stablecoins (BTC/USD, EUR/USD);
Cross pairs: two crypto assets or two currencies, excluding the main reserve currency (ETH/BTC, EUR/GBP);
Exotic pairs: assets with lower liquidity and higher volatility.
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How to choose a pair?
1. 📉 For beginners, start with stable pairs (BTC/USDT, ETH/USD) – less volatile.
2. 📊 Check liquidity: trading pairs with higher volume have smaller spreads and easier execution.
3. 🎯 As you gain experience, you can explore pairs with higher risk/return (ETH/BNB, EUR/JPY, etc).
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Summary
TradingPairs101 is the basic guide to understanding how trading pairs work, whether in crypto (BTC/USDT, ETH/BTC, etc.) or in forex (EUR/USD, GBP/JPY, etc.). Understanding the concept of pair — base vs quote, liquidity, types of pair — is the first step for any trader.
