Trading
Trading Pair
Two assets that can be traded against each other on an exchange. The first asset (base) is priced in units of the second asset (quote), like BTC/USDT.
Last updated: January 5, 2025
What is a Trading Pair?
A trading pair represents two assets that can be exchanged on an exchange. It shows how much of one asset (quote) is needed to buy one unit of another (base). For example, BTC/USDT shows Bitcoin’s price in USDT.
Reading Trading Pairs
Structure: BASE/QUOTE
BTC/USDT
- BTC = Base currency (what you’re buying/selling)
- USDT = Quote currency (what you’re paying with)
- Price shows USDT needed for 1 BTC
Examples
| Pair | Base | Quote | Meaning |
|---|---|---|---|
| BTC/USDT | BTC | USDT | BTC price in USDT |
| ETH/BTC | ETH | BTC | ETH price in BTC |
| SOL/USD | SOL | USD | SOL price in USD |
Types of Trading Pairs
Fiat Pairs
- BTC/USD, ETH/EUR
- Direct fiat trading
- Requires KYC
- Limited by region
Stablecoin Pairs
- BTC/USDT, ETH/USDC
- Most liquid usually
- 24/7 availability
- No bank involvement
Crypto-to-Crypto
- ETH/BTC, SOL/ETH
- Trade between cryptos
- No fiat involved
- Good for portfolio rebalancing
Popular Trading Pairs
By Volume
| Pair | Description |
|---|---|
| BTC/USDT | Highest volume globally |
| ETH/USDT | Second most traded |
| BTC/USD | Popular on US exchanges |
| ETH/BTC | Classic crypto pair |
| SOL/USDT | Popular altcoin pair |
Choosing Trading Pairs
Consider Liquidity
- Higher volume = better execution
- Tighter spreads
- Less slippage
Consider Fees
- Some pairs have lower fees
- USDT pairs often cheapest
- Check exchange fee schedule
Consider Your Goals
- Want fiat? Use fiat pairs
- Just trading? Stablecoins fine
- Building BTC? Use BTC pairs
Trading Pairs on Exchanges
Binance
- 1000+ trading pairs
- USDT, BUSD, BTC pairs
- Fiat pairs (limited)
Coinbase
- USD, USDT, USDC pairs
- Focus on major pairs
- Good fiat integration
Kraken
- USD, EUR pairs
- Good fiat options
- Fewer pairs, higher quality
Converting Between Assets
Direct Pair Exists
ETH to USDT:
- Trade ETH/USDT directly
- Single transaction
- Lowest cost
No Direct Pair
LINK to SOL:
- LINK → USDT (or BTC)
- USDT → SOL
- Two transactions
- Higher cost
Exchange Conversion Feature
- Some exchanges offer direct swap
- May be more expensive
- More convenient
Base Currency Strategies
Bitcoin as Base
Trading with BTC pairs:
- Measure performance in BTC
- Popular with “stackers”
- Different perspective than USD
USD/Stablecoin as Base
Trading with USD pairs:
- Measure performance in dollars
- More intuitive for most
- Standard approach
Understanding Price
BTC/USDT = 70,000
- 1 BTC costs 70,000 USDT
- Buying: Pay 70,000 USDT, get 1 BTC
- Selling: Give 1 BTC, get 70,000 USDT
ETH/BTC = 0.05
- 1 ETH costs 0.05 BTC
- Shows ETH’s value in BTC terms
- Useful for comparing crypto-to-crypto
Pair Liquidity Differences
Same asset, different liquidity:
- BTC/USDT: Very high liquidity
- BTC/EUR: Lower liquidity
- BTC/GBP: Even lower
Trade the most liquid pair when possible.
Special Pairs
Leveraged Token Pairs
- BTCUP/USDT, ETHDOWN/USDT
- Built-in leverage
- Complex mechanics
Inverse Pairs
- USD/BTC (inverted)
- Less common
- Different use cases
Ready to Start Trading?
Now that you understand trading pair, explore the best exchanges to begin your crypto journey.