#TradingPairs101

Trading Pairs or in good Spanish (Trading Pairs) refers to the combination of two cryptocurrencies or assets that can be exchanged with each other on an exchange. In cryptocurrency trading, pairs represent the value of one currency in terms of another.

Common examples of Trading Pairs:

BTC/USDT Bitcoin vs. Tether (stablecoin)

ETH/BTC Ethereum vs. Bitcoin

SOL/USD Solana vs. US Dollar (in traditional exchanges)

Types of Trading Pairs:

1. Major Pairs: involve strong currencies such as BTC, ETH, or stablecoins (USDT, USDC).

- Example: **BTC/USDT**, **ETH/USDC**.

2. Altcoin/altcoin pairs: Combine two alternative cryptocurrencies.

an example: ADA/DOGE (Cardano vs. Dogecoin).

3. Fiat pairs: A cryptocurrency against a traditional currency (USD, EUR, etc.) for example: BTC/EUR (Bitcoin vs. Euro).

How do they work?

- If you trade BTC/USDT you are buying/selling Bitcoin using Tether as a reference.

- If the price of BTC/USDT is $50,000 it means that 1 Bitcoin is worth 50,000 USDT.

The importance of exchanges listing different pairs to allow direct trading between cryptocurrencies without the need to first convert to fiat or another currency.