#TradingPairs101

**What it is:** A **trading pair** shows how much of one cryptocurrency (or asset) is needed to buy another. It's the basic unit of trading on exchanges.

* **Structure:** Written as `BASE/QUOTE` (e.g., **BTC/USD**).

* **Base Currency:** The asset you are *buying* or *selling* (e.g., BTC).

* **Quote Currency:** The asset used to *price* the base (e.g., USD). It shows the cost of *one unit* of the base.

**Examples:**

* **BTC/USD = 68,000:** Means 1 Bitcoin costs 68,000 US Dollars.

* **ETH/BTC = 0.05:** Means 1 Ethereum costs 0.05 Bitcoin.

**Why Pairs Matter:**

1. **Market Access:** They define *what* you can trade directly.

2. **Liquidity:** Popular pairs (like BTC/USD, ETH/USDT) have more buyers/sellers, making trades easier and faster.

3. **Price Discovery:** They establish the relative value between two assets.

4. **Volatility:** Pairs involving stablecoins (like USD/USDT) show price changes in familiar terms (dollars), while crypto/crypto pairs (like ETH/BTC) show relative performance.

**Key Insight:** Trading always involves exchanging one asset for another. The pair tells you the rate. **Always check the pair carefully before trading!**