Lesson 3 of 6 9 min read
Exchanges, pairs and fees
How trading venues work and what a trade really costs.
Trading pairs
BTC/USDT means you're pricing Bitcoin in Tether. Buying the pair spends USDT to get BTC. The first asset is the base, the second is the quote.
Fees add up
Every trade usually pays a maker or taker fee, and the spread (gap between best buy and sell price) is a hidden cost. Frequent small trades can lose meaningful money to fees alone.
Spot vs derivatives
Spot means you own the coin. Futures and perpetuals let you bet on price with borrowed money (leverage). Derivatives magnify both gains and losses — beginners should master spot first.
Key takeaways
- Base/quote: you buy the first with the second.
- Fees and spread are real costs — count them.
- Leverage magnifies losses as much as gains.
Exercise
Look up your exchange's fee schedule. Work out the total fee for buying and later selling $500 of BTC.
Educational content only, not financial advice. Crypto is volatile and you can lose money.