#TradingPairs101

How do trading pairs work?

A trading pair (e.g., BTC/USDT) consists of two assets that are exchanged with each other. The first asset is the "base" (what you buy/sell), and the second is the "quote" (the asset in which the price is expressed). Buying the pair means using the quote asset to acquire the base; selling it is the opposite.

How to choose the right pairs for your strategy?

Volatility: Choose according to your strategy (high for quick profits with more risk; low for more stability).

Liquidity: Essential to enter and exit without issues or slippage. Prefer popular pairs.

Analysis: Trade pairs that you know well (fundamental and technical) and where you can identify patterns.

Capital and Risk: Consider your capital and avoid low-cap pairs if you are conservative. Diversify, but without overextending.

I prefer pairs with high liquidity and manageable volatility like BTC/USDT and ETH/USDT for their stability. For altcoins, I conduct rigorous analysis and always use strict stop-losses. I also consider the correlation between pairs. The key is research, analysis, and risk management.