#TradingPairs101 TradingPairs101

Trading pairs are the foundation of cryptocurrency and forex markets, representing the relative value of one asset against another. Common pairs include BTC/USD (Bitcoin vs. US Dollar) and ETH/BTC (Ethereum vs. Bitcoin). Major pairs like EUR/USD or GBP/USD dominate forex trading due to high liquidity and tight spreads. Exotic pairs, such as lesser-known altcoins or minor currencies, often have lower liquidity and higher volatility. Understanding trading pairs helps traders analyze price movements, arbitrage opportunities, and market trends. Always consider fees, slippage, and order book depth when trading less popular pairs. Diversifying across multiple pairs can reduce risk while capitalizing on different market conditions.