#TradingPairs101

Choosing the Right Trading Pair: Why It Matters More Than You Think

Trading pairs are the foundation of any trade — but how well do you understand them?

🔁 Base vs Quote

In any trading pair, the base asset is what you're buying/selling, and the quote asset is what you're pricing it in. For example, in BTC/USDT, you're buying or selling BTC (base) using USDT (quote).

🔍 Stablecoin vs Crypto-Denominated Pairs

I tend to trade more in stablecoin pairs like USDT or USDC. Why? Because they make it easier to measure gains/losses in dollar terms and help reduce volatility when managing risk.

However, I also use crypto-denominated pairs (like ETH/BTC) when I want to grow my BTC or ETH holdings, especially during periods of market consolidation.

📌 Choosing the Right Pair

Here’s what I consider:

1. Market conditions (bullish, bearish, or ranging)

2. Volatility of the quote asset

My goal: Am I trying to grow USD value or stack more crypto?

✅ Real-World Example

Once I traded ETH/BTC during a short BTC pullback. ETH was pumping, and by using the ETH/BTC pair instead of ETH/USDT, I gained not just in ETH price — but also increased my BTC holdings. A win-win.