#TradingPairs101
If you've ever seen BTC/USDT or ETH/BUSD on Binance and wondered what it means โ this is for you ๐
๐ What is a Trading Pair?
A trading pair lets you exchange one asset for another.
๐ Example: BTC/USDT means you're trading Bitcoin for Tether (USDT).
๐ How It Works:
๐น Base Asset = The first asset (e.g., BTC)
๐น Quote Asset = The second one (e.g., USDT)
Youโre buying/selling the base using the quote.
๐ Buying BTC/USDT = Buying Bitcoin using USDT
๐ฐ Selling BTC/USDT = Selling Bitcoin for USDT
๐ Types of Trading Pairs:
Crypto/Stablecoin
โถ๏ธ e.g., BTC/USDT, ETH/BUSD
๐น Most common & beginner-friendly
๐น Stable value for easier tracking
Crypto/Crypto
๐น Good for swapping between coins
๐น More volatile, useful for advanced strategies
Fiat/Crypto (on CEX)
โถ๏ธ e.g., BTC/INR, ETH/EUR
๐น Great for on-ramping/off-ramping via real-world currency
๐ง Pro Tip:
Always check the liquidity & volume of a trading pair before trading. High volume = smoother trade = less slippage!
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