🔍 Deepening the Fundamentals of Crypto Trading

📘 Topic 5: #TradingPairs101

When you trade, you are not buying an asset alone, but in relation to another. That is a trading pair, and understanding how it works is key to making good decisions.

💱 What is a trading pair?

It is the combination of two assets that you can exchange with each other.

Ex: BTC/USDT = you are buying BTC with USDT (or selling BTC for USDT).

🔑 Common types of pairs:

• Crypto vs. stablecoin (BTC/USDT, ETH/USDC)

• Crypto vs. crypto (ETH/BTC, SOL/ETH)

• Crypto vs. fiat (BTC/EUR, ETH/BRL) — on exchanges that allow it

🧠 How do I choose the right pair?

• Volatility: Are you looking for large movements or stability?

• Liquidity: Is there good volume and depth in the pair?

• Strategy: Are you going to hold the base (BTC/ETH) or do you prefer stablecoins to take profits (USDT/USDC)?

• Market context: Sometimes it's better to switch from an altcoin to BTC than to fiat.

📈 Practical example:

When the market is bullish, I usually trade pairs like SOL/USDT. But in sideways or bearish markets, I prefer ETH/BTC to protect value without going to fiat.

💡 Tip for new traders:

Learn to read the direction of the pair: In ADA/USDT, if it goes up, it’s because ADA is strengthening against USDT. Don’t confuse it with the inversion of the pair!

👉 What pairs do you use the most and why?

Share your experience with the hashtag #TradingPairs101 from the Binance app and earn points 💪💰