#TradingPairs101

Mastering the Basics

Intelligent trading depends on knowledge of trading pairs. Two components make up a pair: a quote asset (what you're using to value it) and a base asset (what you're purchasing or selling). BTC/USDT, for instance, has BTC as the base and USDT as the quote.

Stablecoin pairs like USDT or BUSD help me to measure gains in fiat currency and lower volatility, thus I prefer them. But occasionally I use crypto-to-crypto pairings for stacking particular coins or arbitrage.

Market circumstances, volatility, and your objectives will determine your pair choice. Had I used ETH/USDT, I would have remained in profit; once I swapped ETH/BTC believing ETH would outperform, but BTC exploded.

Always align your pair with your plan; it might either make or ruin your trade.