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

#TradingPairs101