#TradingPairs101

✅ What Is a Trading Pair?

A trading pair on Binance (or any exchange) shows two assets that can be traded against each other. For example:

BTC/USDT means you're trading Bitcoin against Tether (a stablecoin).

It tells you:

What asset you're buying (the first one).

What asset you're using to pay (the second one).

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📘 How to Read a Trading Pair

Let’s take ETH/BTC as an example:

ETH (Ethereum) is the base currency (the one you're buying or selling).

BTC (Bitcoin) is the quote currency (the one you're using to pay or receive).

So:

Buy ETH/BTC = Spend BTC to buy ETH.

Sell ETH/BTC = Sell ETH to receive BTC.

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💡 Common Quote Currencies on Binance

These are the currencies often used to quote prices:

Symbol Name What it means

USDT Tether (stablecoin) 1 USDT ≈ 1 USD; widely used for pricing

BUSD Binance USD Another USD stablecoin (phased out in 2024)

BTC Bitcoin Trade against BTC

ETH Ethereum Trade against ETH

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🧠 Why Do Trading Pairs Matter?

1. Determine what you can trade: You can only trade between certain coins. If there's no pair like DOGE/ADA, you may need to go from DOGE → USDT → ADA.

2. Price differences: Same coin may have slightly different prices in different pairs due to demand/supply.

3. Strategy: Choosing the right pair impacts fees, slippage, and ease of conversion.