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A trading pair represents two assets that can be traded against each other on an exchange, enabling price discovery and liquidity for those assets. Each trading pair is composed of a base currency and a quote currency. The price of the pair reflects how much of the quote currency is needed to purchase one unit of the base currency. For example, in the BTC/USD trading pair, Bitcoin (BTC) is the base currency, and the U.S. dollar (USD) is the quote currency, with the price indicating how many USD are required to buy one BTC.
Trading pairs are essential for facilitating the exchange of different cryptocurrencies and fiat currencies. They allow traders to move between various assets without needing to convert to a common currency first. For example, if a trader holds Ethereum (ETH) and wants to acquire Bitcoin (BTC), they can trade directly within the ETH/BTC pair rather than converting ETH to USD and then purchasing BTC. This direct conversion reduces trading costs and simplifies the process.
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In Plena Finance, a trading pair refers to two different cryptocurrencies that can be exchanged for each other on the platform. Each pair shows the value of one token relative to the other. For example, the PLENA/WETH trading pair allows users to swap $PLENA tokens for WETH (Wrapped Ethereum), or vice versa, depending on the current exchange rate. Trading pairs are fundamental to cryptocurrency markets as they enable the buying and selling of different assets, facilitating liquidity and price discovery within the DeFi ecosystem
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