$ETH 🔗 Basics of Trading Pairs in Crypto
Trading pairs are the link between two currencies: the base currency and the quote currency. For example, in the pair BTC/USDT, Bitcoin is the base currency, and Tether is the quote currency.
Why is it important to you?
- It determines liquidity and the speed of order execution
- It affects the currencies you can easily access
- It defines how profits and losses (PnL) are calculated
Tips for choosing the right pair:
1. Start with major pairs 🔝
BTC/USDT – Most liquid and widespread
ETH/USDT – Second largest trading volume
2. Monitor the price spreads (Spread) 💸
The lower the spread, the more commissions you save and the less slippage you experience
3. Try Altcoin pairs 🔍
When you want to diversify, look for promising projects (like ADA/USDT or SOL/USDT)
4. Use a maximum of two pairs for monitoring 👀
So you don't get distracted and miss opportunities in the market
5. Keep an eye on daily liquidity 📊
High trading volume means faster entry and exit without significant price changes
💡 Additional Information:
You can trade directly between Altcoin pairs (like ETH/BTC) to save on commissions and reduce waiting times, but be cautious of low liquidity.
Invest your time in understanding the pairs before hitting “Buy” or “Sell” to become a smarter and faster trader! 🚀