#TradingPairs101

When I first entered the trading world, I thought that all currencies could only be bought with dollars. I didn't know that there was something called trading pairs, nor did I understand the difference between BTC/USDT and ETH/BTC, for example. After a while of learning and experimenting, I started to understand that choosing the right trading pair has a significant impact on the trade. Sometimes the currency itself is good, but the pair you're trading might not have enough liquidity or behaves strangely.

One of the things I learned is that some pairs are more stable and easier to predict their movement, like pairs against USDT, because they are tied to the dollar and their price is clear. On the other hand, pairs against currencies like BTC or ETH have more complex movements, because you're following two currencies at the same time, not just one.

I always ask myself before any trade: What pair will give me the best price and execution? Do I need to convert my profits back to dollars or invest them in another asset? Many times I use pairs against BNB or BTC because I don't want to go back to cash, but I want to switch between projects. I've come to realize that choosing the pair depends on my goal for the trade and the overall market condition.

Choosing the pair has become part of my decision-making process; I no longer trade just because I see a currency rising. I have to see with which currency I will trade it and how this pair has moved in the past few days. I learned to monitor the volume, liquidity, and spread before opening the trade. This is a significant difference from the old days when I would just hit buy and that was it.