#tradingpairs101 is a basic introduction to how trading pairs work in financial markets, especially in cryptocurrencies and exchanges like Binance, Coinbase, etc. Here I explain the fundamental concepts:

What is a trading pair?

A trading pair represents two assets that can be exchanged for each other. For example:

BTC/USDT means that you are exchanging Bitcoin (BTC) for Tether (USDT).

This answers the question: how much USDT does 1 BTC cost?

How does it work?

A trading pair always has this format:

> Base currency / Quoted currency

Base currency: the asset that you are buying or selling (the first one).

Quoted currency: the asset that you use to pay or receive (the second one).

Pair Meaning

BTC/USDT Buy or sell Bitcoin using Tether (USD)

ETH/USDT Buy or sell Ethereum for Tether

SOL/USDC Buy or sell Solana using USD Coin

ADA/BTC Buy or sell Cardano for Bitcoin