When I first entered the world of trading, I thought all currencies were bought only with dollars. I didn't know that there was something called trading pairs, nor what the difference was between BTC/USDT and ETH/BTC, for example. After a period of learning and experience, I began to understand that choosing the right trading pair has a significant impact on the trade. Sometimes the currency itself is good, but the pair you are trading may not have enough liquidity or may behave strangely.
One of the things I learned is that some pairs are more stable and easier to predict their movement, like the pairs against USDT, as they are tied to the dollar and their price is clear. On the other hand, pairs against currencies like BTC or ETH have more complex movements because you are tracking two currencies at the same time, not just one.
I always started asking myself before any trade: What pair offers me the best price and execution? Do I need to convert my profits back to dollars or invest them in another asset? Many times I use pairs against BNB or BTC because I don't want to go back to cash, I just want to swap between projects. I came to understand that choosing the pair depends on my goal for the trade and the overall market condition.
Choosing the pair has become part of my decision; I no longer trade just because I saw a currency rising. I need to see which currency I am going to trade against and how this pair has moved over the past few days. I learned to watch the volume, liquidity, and spread before I open the trade. This is a big difference from the old days when I would just click buy and that was it.