A trading pair is a pair of assets that can be traded against each other on an exchange. In cryptocurrency trading, trading pairs typically consist of:
1. *Base currency*: The asset being bought or sold.
2. *Quote currency*: The asset used to buy or sell the base currency.
Example: BTC/USDT
- BTC (Bitcoin) is the base currency.
- USDT (Tether) is the quote currency.
Trading pairs allow traders to:
1. Buy or sell cryptocurrencies
2. Speculate on price movements
3. Hedge against market volatility
Common trading pairs include:
1. BTC/USDT
2. ETH/USDT
3. BTC/ETH
