Everyone, today let's discuss trading pairs; this is the 'secret code' in crypto trading! If you want to thrive in the trading world, understanding trading pairs is essential.
1. Trading Pair? What is that?
To put it simply, it's like going to the market to buy vegetables; what you want to buy is the 'underlying asset', and the money you use to buy those vegetables is the 'quoted asset'! For example, in the BNBBUSD trading pair, BUSD is the cash you have, while BNB is the 'vegetable' you desire.
2. Stablecoin Pricing VS Cryptocurrency Pricing
Personally, I prefer trading pairs priced in stablecoins, like USDT and BUSD. Their value is like sitting on a stable 'small stool', with minimal fluctuations. Why? It provides peace of mind, as I don't have to worry about the volatility of the pricing currency turning my earnings into something 'unpredictable'. However, trading pairs priced in cryptocurrencies also have their advantages; if the market is good, the profits can 'soar to the sky'!
3. Selecting Trading Pairs, I have these few tips
1. Look at Trading Volume: Trading pairs with high volumes are like 'big hits', with many buyers and sellers, leading to quick transactions that are not easily swayed by a single trade causing prices to 'rocket' or 'plummet'.
2. Consider Asset Nature: High-risk, high-reward assets are suitable for the 'aggressive'; while stable assets are fit for us 'conservatives'.
3. Combine Trading Strategies: For short-term trading, choose pairs with good liquidity for a quick 'in and out'; for long-term investment, pick those promising projects and nurture them slowly.
4. A good choice of trading pairs can double your earnings; a poor choice could lead to...
I have a friend who is a typical 'aggressive' type. Once, he was eyeing a niche cryptocurrency-priced trading pair, thinking he could make a big profit. However, when the market fluctuated, the price of that trading pair flew around like leaves in a storm. In the end, he watched helplessly as his earnings went from 'joyful' to 'frowning', which is the consequence of poorly selecting a trading pair! So, everyone, take your time to think carefully when choosing a trading pair.
Come on, everyone, quickly share your trading pair selection experience in the Binance Square! Who knows, your story might help someone avoid a 'big pit', and you can also steadily earn Binance points!