#TradingPairs101
---
*Trading Pair 101: Basics Explained*
*What is a Trading Pair?*
A *trading pair* in crypto represents two currencies that can be traded against each other. Example: *BTC/USDT*.
---
*How It Works*
In a pair like *BTC/USDT*:
- *Base currency*: BTC (the one you're buying/selling)
- *Quote currency*: USDT (used to value the base)
*So:*
- If *BTC/USDT = 60,000*, it means 1 BTC = 60,000 USDT.
---
*Types of Trading Pairs*
1. *Crypto-to-Fiat*:
- BTC/INR, ETH/USD
- Used to convert crypto into real-world money.
2. *Crypto-to-Stablecoin*:
- Most commonly used for stability during trades.
3. *Crypto-to-Crypto*:
- Useful for diversifying your crypto portfolio.
---
*Why Trading Pairs Matter*
- Determine what assets you can trade between.
- Affect price volatility depending on liquidity.
- Help in arbitrage and advanced trading strategies.
---
*Common Base & Quote Currencies*
| Base Currency | Common Quote Pairs |
|---------------|---------------------------|
| ETH | USDT, BTC, BNB, DAI |
| BNB | USDT, BTC, ETH |
| USDT | Almost every major coin |
---
