#TradingPairs101

I entered the world of trading, I used to think that all currencies are bought only with dollars. I didn't know that there is something called trading pairs, nor what the difference is between BTC/USDT and ETH/BTC, for example. After a period of learning and experimentation, I began 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 are trading in may not have enough liquidity or may move 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. As for pairs against currencies like BTC or ETH, their movement is more complex because you are tracking two currencies at the same time, not just one.

I always started to ask myself before any trade: What is the pair that gives 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 swap between projects. I came to know that choosing the pair depends on my goal for the trade and on the state of the market as a whole.

Choosing the pair became part of my decision; I no longer trade just because I saw a currency rising, I need to see with which currency I will trade it, and how this pair has moved over the past days. I learned to monitor volume, liquidity, and spread before I open the trade. And this is a big difference from the old days when I used to just click buy and that was it.