#TradingPairs101 Choosing the right trading pair can make or break your trade. Here’s what I’ve learned from my own journey in crypto trading:
💱 How do trading pairs work?
Every trading pair has a base asset and a quote asset. For example, in BTC/USDT, you're using USDT (quote) to buy BTC (base). If BTC/USDT = 50,000, it means 1 BTC = 50,000 USDT.
💡 Stablecoin vs Crypto Pairs
I mostly trade in stablecoin-denominated pairs (like BTC/USDT or ETH/BUSD). Why? Because it’s easier to measure profit/loss in a fixed-value asset (USDT), especially in volatile markets.
🧠 How I Choose the Right Pair
I look for:
Liquidity (high volume = fast execution)
Volatility (more movement = more opportunity)
My Goal – Do I want to increase USDT or accumulate more crypto?
📈 Real Trade Example
I once traded SOL/BTC instead of SOL/USDT, hoping to grow my BTC stack. But while SOL went up in USD, BTC went up even more — and my trade ended in a net loss when measured in USD. Lesson learned: match the pair with your goal!
🚀 Pro Tip: Before every trade, ask yourself – “Am I trying to grow my USD or my crypto bag?