š #TradingPairs101 : The crypto restaurant menu š½ļø
You're at the restaurant. You want to order a dish (BTC).
You need to pay in euros (USDT).
The server brings you the pair BTC/USDT š
A trading pair is simply the exchange rate between two cryptos.
š„ Popular examples :
ā BTC/USDT
ā ETH/BTC
ā SOL/BNB
The more a pair is used, the more liquid it is.
And the more exotic it is⦠the more you need to be careful š
š #TradingPairs101 ā Understanding the structure of crypto markets
A trading pair represents the exchange rate between two digital assets.
š Example : ETH/BTC
ā The displayed price = how much BTC for 1 ETH
ā You can buy or sell ETH for BTC
ā
Why itās important : ā Affects liquidity
ā Changes fees and volatility
ā Allows arbitrage between markets
š Tips : ā Favor pairs with high volume (BTC/USDT, ETH/USDT)
ā On DEX, be careful with pairs with low liquidity pool
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