#TradingPairs101

✅ 1. How do trading pairs work (base vs quote)?

A trading pair compares the value of one cryptocurrency (the base) to another (the quote).

  • Format: BASE/QUOTE

  • Example: In ETH/USDT:

    • $ETH is the base (the asset you're buying or selling).

    • USDT is the quote (what you're using to buy or what you receive when you sell).

  • So, if ETH/USDT = 2,500, it means 1 ETH= 2,500 USDT.

Think of it like exchanging currencies — you're buying one (ETH) using another (USDT).

✅ 2. Do you trade more in stablecoin or crypto-denominated pairs? Why?

It depends on your strategy and goals. Here's a breakdown:


Stablecoin Pairs (e.g., BTC/USDT) / Crypto Pairs (e.g., ETH/BTC)

Easier to track gains/losses in USD / Good for building a specific coin stack (like $BTC )

More liquid, especially for big coins / Often lower liquidity, more volatility

Great for cashing out or risk-off mode / Better during strong crypto trends

Suitable for fiat mindset traders / Suitable for crypto-native portfolios

🧠 My take (and what many traders prefer):

  • Swing traders / portfolio managers use stablecoin pairs more. It's easier to calculate profits, manage risk, and stay anchored in USD-equivalent terms.

  • Altcoin hunters / BTC stackers might use crypto-denominated pairs to grow holdings of a core asset (like trading XRP/ETH to accumulate ETH).

✅ 3. How do you choose the right pair for your trade?

Ask yourself:

  1. What asset are you trying to grow?


    If you want more USD value, use a stablecoin pair (e.g., SOL/USDT).

    If you want more BTC or ETH, use crypto-denominated pairs (e.g., SOL/BTC).

  2. Which pair has better liquidity?


    Check volume. Low-volume pairs = higher slippage.

  3. What’s the trend of the quote asset?


    If BTC is dumping and you’re trading ETH/BTC, ETH may look weak even if it’s holding in USD terms.

    The quote asset’s behavior matters just as much as the base!

✅ 4. Example: How the right (or wrong) pair helped or hurt a trade

🧵 Storytime: Wrong pair cost me profit

  • I was bullish on $XRP and entered a position via the XRP/BTC pair.

  • XRP pumped, but BTC pumped harder at the same time.

  • So XRP/BTC barely moved → I missed out on gains I would’ve had trading XRP/USDT.


📌 Lesson: Even if your coin pumps, if the quote asset also pumps, your gains can get muted. I should’ve used XRP/USDT if I wanted USD gains.