#TradingPairs101
🔄 #Trading Pairs 101: What Are They & How Do They Work?
✅ 1. What Is a Trading Pair?
A trading pair shows how one cryptocurrency is priced in terms of another.
Example:
🟢 BTC/USDT = How many USDT (Tether) it takes to buy 1 Bitcoin.
🟡 ETH/BTC = How much Bitcoin you need to buy 1 Ethereum.
You’re always trading one coin for another, like a currency exchange.
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🧩 2. Base vs Quote Currency
Term Meaning
Base The first coin (what you're buying/selling)
Quote The second coin (what it's priced in)
Example: In ETH/USDT
ETH = base currency
USDT = quote currency
If ETH/USDT = 3,000 → 1 ETH = 3,000 USDT.
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💱 3. Types of Trading Pairs
🔹 Crypto-to-Fiat Pairs
Examples: BTC/USD, ETH/EUR, BNB/PKR
Used for converting crypto to national currency.
🔸 Crypto-to-Stablecoin Pairs
Examples: BTC/USDT, ETH/USDC
Common for trading with less volatility.
Stablecoins like USDT ≈ 1 USD.
🔻 Crypto-to-Crypto Pairs
Used when swapping between different cryptocurrencies without converting to fiat.
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🧠 4. Why Trading Pairs Matter
They determine which assets you can swap directly.
Affect fees and slippage depending on liquidity.
Some coins only have a few trading pairs on certain exchanges.
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💡 5. Pro Tips
🧮 If you want to buy a coin but can’t find a direct pair (e.g., ADA/USDT), try using an intermediate pair like ADA/BTC → BTC/USDT.
📈 Use stablecoin pairs (like USDT or BUSD) for easier tracking of profits in USD terms.
🔄 Always check the spread and liquidity of a pair — lower is better.
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📊 Example Breakdown
Trading Pair Meaning Used For
BTC/USDT Buying/selling BTC with USDT Most common trading pair
ETH/BTC Buying ETH with BTC or vice versa Crypto-to-crypto trading
ADA/USDT Buying ADA with stablecoins Stablecoin pricing
BTC/PKR Buying BTC with Pakistani Rupees Fiat on-ramps
