#TradingPairs101
🔄 Trading pairs are the foundation of cryptocurrency trading. They represent two digital assets that can be exchanged for one another, for example, BTC/USDT. The first currency (BTC) is called the base currency, and the second (USDT) is called the quoted currency. 📉 The price of the trading pair shows how many units of the quoted currency are needed to buy one unit of the base currency.
✅ Choosing the right trading pair is important for successful trading. For example, if you want to trade altcoins, it is worth considering whether they are traded directly with fiat or only through bitcoin. It is also important to consider the liquidity of the pair — 💧 the higher the trading volume, the easier it is to enter and exit a position with minimal slippage.
👶 Beginners are recommended to start with popular pairs such as BTC/USDT or ETH/USDT before moving on to less liquid assets. Understanding the mechanics of trading pairs 🧠 will help avoid mistakes and increase trading efficiency. 🚀
