#TradingPairs101 TradingPairs101

Trading pairs in cryptocurrency represent two types of currencies being traded against each other, such as BTC/USDT or ETH/BTC. The first asset is what you are buying or selling, while the second asset is the quoted currency. For example, in the BTC/USDT pair, you are trading Bitcoin for Tether. Choosing the right trading pair can affect fees, slippage, and strategy. Popular pairs often have higher liquidity and narrower spreads, while exotic pairs may offer more volatility. Traders often use stablecoin pairs for easier price tracking. Understanding how trading pairs work is fundamental to navigating cryptocurrency exchanges and effectively managing portfolio risk.