How trading pairs work and why your choice of pair is important
When you start trading, you'll find that each trade consists of a currency pair like BTC / USDT or ETH / BTC
These two currencies contain:
The base asset - the currency you are buying or selling
The quote asset - the currency you use to calculate the price
So ETH / USDT means you are buying or selling ETH and its price is calculated in USDT
Should you trade with Stablecoins or crypto pairs?
Stablecoins like USDT or USDC provide you with stability, useful when the market is volatile
Crypto pairs like ETH / BTC have greater opportunities if you want to play on the price movement of both currencies
I use Stablecoins to protect my capital
And when there's a clear opportunity, I play on crypto pairs
How to choose the right pair
For long-term investment, choose BTC / USDT or ETH / USDT
For quick trading, look at pairs priced in crypto
You must choose a pair with high liquidity so you can enter and exit easily
For example, if you enter SOL / USDT
If SOL goes up, you'll profit, but if liquidity is weak or the market turns, you might lose even if the price is rising
If you use SOL / BTC, you can play on BTC's movement with SOL and find more opportunities
In short, choosing the right pair determines your chances and risks
Start small and try first