#TradingPairs101 Understanding Crypto Trading Pairs

In the world of crypto, choosing the right trading pair can be the difference between profit and loss. Let's understand the basics!

🔄 What is a trading pair?

A pair consists of two assets: the base asset (which you buy/sell) and the quote asset (which is used to value the base asset). For example: in the BTC/USDT pair, BTC is the base asset and USDT is the quote. So, you are buying BTC using USDT.

⚖️ Stablecoin vs. Crypto-to-Crypto

Personally, I often trade using stablecoins (USDT, USDC) because their volatility is low, making it easier to measure profits. However, during strong market trends, crypto-to-crypto pairs like ETH/BTC can offer interesting arbitrage opportunities.

🎯 How to choose the right pair?

Liquidity: Ensure the trading volume is sufficiently high to avoid slippage.

Trading goals: Want to hedge? Choose stablecoins. Want to bet on the relative performance of two assets? Use crypto-to-crypto pairs.

Market conditions: When BTC is sideways, altcoins/USDT might be more attractive.

📉 Real-life example:

I once traded SOL/BTC while BTC was bullish—the result was that SOL appeared to be "down" in that pair, even though its USD value was up! Since then, I always check the trends of both assets before taking a position. 📊

The right pair = the right decision.

Come on, share your favorite pair or unique experience with us here ☺️