$BTC tradingpairs101 – What are trading pairs and why do they matter? 💱
In trading, you don't buy an asset “alone” – you trade it in pairs with another. This means that the value of an asset is always expressed in relation to another.
🔸 Classic example: BTC/USDT – Here you “sell” USDT to buy BTC (or vice versa).
🔸 In forex: EUR/USD – you buy euros and sell dollars.
🔸 On DEXs: you can have pairs like ETH/DAI or SOL/USDC.
🔍 It's important to understand:
• What the base currency is and what the quote currency is.
• The liquidity of the pair.
• Volatility – some pairs move more than