Do you want to start trading or wish to participate in the Binance Futures Traders League, but you don't know where to start? A good strategy begins with choosing the right trading pair. This article aims to explain what it is, how it works, and what elements to consider to make an informed choice.

đŸȘ™ What is a crypto trading pair?

A trading pair represents two assets that are exchanged for one another on a platform. For example, BTC/USDT is a pair where you can exchange Bitcoin (BTC) for Tether (USDT), a stablecoin.

  • The first asset (here BTC) is called the base currency.

  • The second asset (USDT) is the quote currency.

The displayed price indicates how much of the quoted asset is needed to obtain one unit of the base asset. Pairs can be:

  • Crypto/Fiat : BTC/EUR, ETH/USD

  • Crypto/Crypto : ETH/BTC, SOL/BNB

  • Crypto/Stablecoin : BTC/USDT, ADA/BUSD

⚙ How do pairs work on exchange platforms?

On centralized exchanges (CEXs) like Binance, the most popular pairs have high liquidity (ease of buying/selling without influencing the price).

On decentralized exchanges (DEXs), users trade directly with each other, but some pairs may have less liquidity.

Liquidity and trading volume are essential to avoid hidden fees like slippage (the gap between expected price and executed price).

🧠 Some factors for choosing your trading pair wisely

Here are some criteria that many traders consider when selecting their trading pairs:

  • Trading strategy: Scalping (quick small profits), Swing trading (medium term), or Day trading (short term)

  • Volatility: Some pairs exhibit more price movement than others

  • Trading volume: The higher it is, the easier orders are filled

  • Low spreads: Less difference between buy and sell price

👉 For example, pairs like BTC/USDT or ETH/USDT are very popular for their liquidity and relative stability. Other traders opt for more volatile pairs depending on their strategy.

🔗 Binance offers one of the widest selections of trading pairs. You can explore the markets here: Binance Markets

🏆 For participants in the Futures Traders League

If you are participating in a competition like the Binance Futures Traders League, here are some points to keep in mind:

  • Consider liquidity when choosing your pairs, in order to execute your orders without surprises.

  • Check the daily trading volume of the pair before diving in.

  • Be attentive to market trends and the evolution of available futures contracts.

You can check the list of available contracts and participate here: Solo competition participation page or Team competition participation page

Understanding how trading pairs work helps you navigate the markets better. Moreover, in a competition like the Binance Futures Traders League, every detail counts.

Take the time to explore the available options, analyze the market, and choose a pair consistent with your trading goals.

⚠ Warning: This does not constitute financial advice (NFA). The information shared in this article is for educational purposes only. Always do your own research (DYOR) before making a trading decision.

Good luck and happy trading! 🚀

#TradingPairs101 #CryptoDĂ©butant