Trading Pairs 101: The Key to Smarter Crypto Trades
Ever bought a coin, saw the price go up, but still didn’t make a profit?
The reason might be the trading pair you chose.
Picking the right trading pair is a simple but powerful way to level up your crypto strategy. Let’s break it down.
What Are Trading Pairs?
A trading pair is made up of two assets:
• The base asset (what you’re buying or selling)
• The quote asset (what you’re using to trade)
Example: In BTC/USDT, you’re trading Bitcoin (base) using Tether (quote). If the price is 65,000, it means 1 BTC = 65,000 USDT.
Stablecoin vs Crypto Pairs
I usually trade with stablecoin pairs like USDT. It’s easier to track profits in dollar value and the price is more stable.
But sometimes, I use crypto-to-crypto pairs like ETH/BNB if I believe both coins will grow. It depends on the market and my goal.
How I Pick the Right Pair
Here’s what I look at:
• Liquidity: Is it easy to buy or sell fast?
• Volatility: Will this pair move enough to trade?
• Trend: Are both coins going up or down?
A Quick Example
Once, I traded ADA/ETH instead of ADA/USDT. ETH dropped hard, and even though ADA stayed strong, I lost value. The wrong pair hurt my trade.
Lesson: Always think about both coins in the pair—not just the one you’re buying.
Understanding trading pairs can protect your profits and help you trade smarter.
Ready to share your experience?
Post with #TradingPairs101 and earn Binance Points. Just tap “+” on the Binance app and visit the Task Center.
