#TradingPairs101

When I first entered the trading world, I thought that all currencies were only bought with dollars. I didn’t know there was something called trading pairs, nor what the difference was between BTC/USDT and ETH/BTC, for example. After some time of learning and experimenting, 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’re 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 movements, like the pairs against USDT, because they are tied to the dollar and their price is clear. As for the pairs against currencies like BTC or ETH, their movements are more complex because you are tracking 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 just want to swap between projects. I’ve come to know that choosing the pair depends on my goal for the trade and the overall market condition.