#交易对 In the cryptocurrency market, what you are actually buying and selling is not the "coin", but the trading pair (Trading Pair).

The choice of trading pair not only affects the price at which you place orders but also influences your profit and loss logic, the depth of liquidity, and the efficiency of capital allocation.

Today, Sister Mao will take you from 0 to 1 to understand the underlying logic of trading pairs👇

🧠 What is a trading pair? (Base Asset vs Quote Asset)

A trading pair refers to the currency you use to buy/sell another currency.

📌 It consists of two parts:

Base Asset: The currency you want to trade, for example, BTC

Quote Asset: The currency you use to measure/settle, for example, USDT

➡️ For example, BTC/USDT:

You use USDT to buy BTC, 1 BTC = xxx USDT

➡️ For example, ETH/BTC:

You use BTC to buy ETH, 1 ETH = xxx BTC

🧩 Why does the choice of trading pair affect your profit and loss?

Because your profit and loss are settled in terms of the quote currency.

For example:

Assume you use BTC to buy ETH (ETH/BTC), ETH rises, but BTC rises faster, and you end up losing in the quote currency (BTC).

📍 So clarify: Do you want to earn the value of USDT? Or do you want to accumulate more BTC?

🧭 I prefer trading "stablecoin trading pairs" (like ETH/USDT) for three reasons:

1️⃣ Clearer returns: Profit and loss are settled in USDT, making it easier to record and backtest.

2️⃣ Clearer risk control: Stop-loss ratios and position control are intuitive and easy to calculate.

3️⃣ Pure volatility: Only affected by the price change of one currency, not interfered by the value fluctuation of the base currency.

But I will also use BTC or ETH valued pairs in specific scenarios:

To implement medium to long-term BTC appreciation strategies.

Want to switch between strong and weak currencies during volatility (for example, exchanging ETH when BTC is at a high).

🧠 How to choose the most suitable trading pair? You can use this method:

✅ 1. Clarify your goal.

Do you want to earn stablecoins? Or do you want to accumulate ETH, BTC denomination?

✅ 2. Assess the market structure.

Bull market: Suitable for chasing volatile coins/pairs.

Bear market: Prioritize stablecoin pairs, focusing on preserving value.

✅ 3. Examine the depth of the exchange.

Prioritize trading pairs with good liquidity (main exchanges/large coins/USDT trading areas).

✅ 4. Pay attention to fee differences and spreads.

Some platforms have lower fees for ETH/BTC, but may have larger slippage; it requires combined judgment.

💬 Practical experience sharing:

I once chose the wrong trading pair on a small coin that had a very sharp increase.