At first glance, trading pairs seem simple. But understanding them deeply can change the way you trade.

What is a Trading Pair?

A trading pair tells you what you’re buying and what you’re paying with.

Example:

BTC/USDT means you’re buying Bitcoin using Tether (USDT).

ETH/BTC means you’re buying Ethereum using Bitcoin.

It’s always: Quote / Base

  • First coin (BTC): What you’re buying

  • Second coin (USDT): What you’re using to buy it

Why Trading Pairs Matter:

The pair you choose determines:

  • How easily your trade executes (liquidity)

  • Your fees

  • The trend you’re actually betting on

Real-World Scenario:

Say Bitcoin is at $106,151, and Ethereum is at $3,850.

You believe ETH will outperform BTC.

Instead of buying ETH/USDT, you go for ETH/BTC — this lets you profit even if ETH and BTC both go up, as long as ETH gains more.

3 Tips for Using Pairs Smartly:

  1. Use stablecoin pairs (USDT, BUSD, FDUSD) when you want simple USD-equivalent profits.

  2. Use crypto-to-crypto pairs (like ETH/BTC) to hedge or bet on performance between coins.

  3. Always check volume and liquidity — some pairs are active, some are ghost towns.

My Trading Insight:

Most new traders stick with USDT pairs, and that’s okay. But understanding crypto pairs helps you see deeper relationships in the market. I use ETH/BTC when I’m bullish on Ethereum relative to Bitcoin — not just in dollar terms.

Mastering pairs = understanding the true direction of your bet.

Follow @mythoughts — no hype, just thoughts.

#TradingPairs101 #CEXvsDEX101