【#Trading Pair】Choosing the wrong trading pair can really affect your entire strategy!
I still remember when I first entered the crypto world, I thought all "trading pairs" were just different cryptocurrencies, and I didn't think too much about it. As a result, I exchanged my funds into ETH/BTC, a "quoted currency pair," and couldn't understand the quotes every day, constantly doubting that I was losing money 😂
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📘 What is a trading pair?
Trading pair = which currency you use to exchange for another currency.
• Base asset trading pair (e.g., BTC/USDT): Buying and selling BTC with USDT, clear pricing, suitable for beginners.
• Quote asset trading pair (e.g., ETH/BTC): Buying and selling ETH with BTC, price fluctuations influenced by both currencies, higher difficulty.
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🧠 Three key points I've learned:
1️⃣ If your assets are stablecoins (USDT, BUSD), it's recommended to focus on base asset trading pairs, as the prices are easier to understand.
2️⃣ Quote trading pairs like ETH/BTC are suitable for "intermediate users" and are often used for arbitrage and hedging strategies.
3️⃣ During a bull market, using USDT against BTC makes it easier to "see profits"; during a bear market, using BTC against other coins allows you to observe the flow of funds.
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📊 This is how I choose now:
• If I want to do short-term spot trading → Choose USDT against the corresponding cryptocurrency.
• If I want to do crypto arbitrage or DeFi with liquidity pools → Consider BTC/ETH quote pairs.
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💬 Comment interaction: Have you ever chosen the wrong trading pair, causing your operations to hit a wall? Or which stablecoin trading pair do you like to use the most?
