What are the advantages of trading BTC pair?

Best-mary

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Quote from: FatFork on October 06, 2023, 06:48:36 AM

Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.

Crypto exchanges usually aim to rake in as much profit as they can from trading fees.

Quote from: cafter on October 06, 2023, 06:07:53 AM

so trading directly with a bitcoin pair will save me fees in any way?

It's kind of obvious. Each individual trade comes with trade fees. The fewer trades you make, the lower your trading fees will be.

Quote from: cafter on October 06, 2023, 06:07:53 AM

How will I profit if the prices of altcoins match those of bitcoin?

Do you know how triangular arbitrage works? That's one way to do it.

Quote from: cafter on October 06, 2023, 06:07:53 AM

When I trade with the BTC pair, both will rise and fall simultaneously.

That will rarely happen. While both cryptocurrencies may follow the same price trend, it doesn't mean that the prices will change simultaneously. When bots are involved, even milliseconds can make a difference.

I could agree to the fact that most crypto exchanges charges higher when it comes to trading few. But there are few out there that uses coupon to offset this trading fee. I think if all exchanges could implement this, maybe trading might be less expensive for all

Natalim

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Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.
Does trading with a bitcoin pair help us save fees in any way? For example, if I need to trade other altcoins, I need to first sell my bitcoin for USDT and then trade that altcoin with the USDT pair. In this process, I need to pay a double fee, so trading directly with a bitcoin pair will save me fees in any way?
How will I profit if the prices of altcoins match those of bitcoin? When I trade with the BTC pair, both will rise and fall simultaneously.

We see a lot and that is good for this will give us an option as to which pair is more profitable. If we could think deeply, why do these coins exist if they can't be used for trading? Good thing that trading platforms give us a chance to choose coins to trade.
You wonder why the price went high and low and this is because of the volatility of the market. Even choosing altcoins the up and down of the price is still what we can see but the advantage of using the Bitcoin pair is we are sure that if the price falls, it will recover - meaning we can't lose if we are patient.

tjtonmoy

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Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.
Does trading with a bitcoin pair help us save fees in any way? For example, if I need to trade other altcoins, I need to first sell my bitcoin for USDT and then trade that altcoin with the USDT pair. In this process, I need to pay a double fee, so trading directly with a bitcoin pair will save me fees in any way?
How will I profit if the prices of altcoins match those of bitcoin? When I trade with the BTC pair, both will rise and fall simultaneously.

You have actually answered your question in your post. Rather than a quick swap from BTC to a selected paired talking or coin, I don't see any other advantages. The market is sometime influenced by sentiments and for that reason The price of both token could either gain or go down. I don't know how people are making trade that way and how they are counting there profits and losses easily. BTC to altcoin pair is a bit complicated. Actually it is confusing.

If you do it with a stable coin or another crypto that is mostly stable could also make sense. I don't think the fees you pay for converting BTC to USD and then to your desired coin is a huge amount. I don't even consider the amount it takes for each swap as it is way too little. So I don't think people will use other pairs for trading only two make the small fee more small.

I still trade with BTC/USDT as it keeps me a stable and easy understanding of how much profit and losses I am making. But I will make my time to read all the interesting replies that have been written by many people here.

DVlog

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Most of the time it's not that profitable because there is no point in selling your BTC for an altcoin if that altcoin is not outperforming bitcoin. This scenario only happens for few months after BTC made new ATH in a bull run. In that case top altcoins rallied and outperformed bitcoin. This is the only time you can sell your BTC to buy altcoin otherwise most of the time either BTC and Altcoin follow the USD price and move sideways or altcoin falls against bitcoin.

Lakai01

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Quote from: michellee on October 15, 2023, 01:03:02 AM

There is no doubt that no altcoin can outperform Bitcoin. And that makes people try to analyze altcoins one by one to find hidden gems that can give them profits in Bitcoin. And while they wait for the bull market, they try accumulating altcoins and Bitcoin.
-snip-

As I said, in the short term, altcoins definitely manage to outperform bitcoin. In the last bull run, this was the case with newly launched projects like SOL or AVAX, which almost achieved a x150 during the bull run. You could only dream of that as a pure bitcoin hodler.
Even in the current bear phase, there are projects that strongly outperform bitcoin, e.g. KASPA. This is KASPAs chart against BTC for example:

Source: Coinmarketcap

My main concern was the long-term aspect. This is where the BTC plays out its absolute strengths and holds the price much better than the altcoins that had outperformed it before. The examples I mentioned with SOL and AVAX, for example, have lost -90% since the last ATH and it is written in the stars whether they will ever reach their ATH again.

michellee

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Quote from: Lakai01 on October 14, 2023, 04:11:17 AM

Quote from: michellee on October 14, 2023, 03:06:01 AM

-snip-
Some altcoins can increase together so people who already buy altcoin using USDT can sell their altcoin for Bitcoin pairs. And that means your profit will be in Bitcoin. That is the way to increase your Bitcoin amount.

From your description, that sounds almost too easy. One should also mention here that there are hardly any altcoins that are able to outperform BTC over a longer period of time. Only in a bull market is it reasonably possible to make significantly more profits with altcoins than with bitcoin. However, as soon as the hype subsides and the bear market begins, the majority of altcoins lose significantly more than Bitcoin itself.

By the way: In the last bull market, hardly any established altcoin managed to surpass the ATH in BTC from the 2017 bull market. Neither ETH nor ADA were able to do so. For example, this is the ETH-BTC chart from Coinmarketcap where you can see, that ETH was in the last bull market far away from its BTC-ATH:

For a short period of holding an altcoin, you can definitely make a profit in BTC, but not in the long run.

There is no doubt that no altcoin can outperform Bitcoin. And that makes people try to analyze altcoins one by one to find hidden gems that can give them profits in Bitcoin. And while they wait for the bull market, they try accumulating altcoins and Bitcoin.

That gives them more time to get the amount they want. And if the bull market really comes and many altcoins are increasing, they will immediately check their portfolio and hope that there is an altcoin that will provide profits. Maybe they will search for altcoins through the top 100 list or even search at the bottom of the list because many undetected coins could rise at any time.

I agree with you that no altcoin has succeeded in surpassing BTC. That's because BTC is still the crypto leader and people's idol. They believe that Bitcoin is still leading the crypto market. I still hold Bitcoin for the long term, while altcoins are only for the short and medium term.

Saint-loup

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Quote from: Yamane_Keto on October 12, 2023, 07:55:29 PM

Quote from: Saint-loup on October 12, 2023, 04:50:07 PM

In addition there are interesting investments in stablecoins, and many people prefer gambling with them, so what you say about the double fees paying issue is not true for everybody.

I'm also starting to wonder at this kind of thinking, why do many people want to take the risk and buy stablecoins like USDT and lend them to get 5% interest when there is a bull market nearby that could double the price much faster than that.
The high liquidity that you find in stable currencies within platforms makes them an ideal tool for stealing customers’ money, as people tend to deposit and keep it on the platform in the hope of interest rather than withdrawing it as Bitcoin.

Well I don't think anyone can guarantee that a bull market is nearby and it could double the current price, that is to say making +100% in one year despite the halving scheduled in 6 months.
But I'm not talking about +5% given by a centralized platform but more about decentralized liquidity pools giving almost 20% APR like the Azuro ones for example. https://azuro.org/liquidity

Lakai01

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Quote from: michellee on October 14, 2023, 03:06:01 AM

-snip-
Some altcoins can increase together so people who already buy altcoin using USDT can sell their altcoin for Bitcoin pairs. And that means your profit will be in Bitcoin. That is the way to increase your Bitcoin amount.

From your description, that sounds almost too easy. One should also mention here that there are hardly any altcoins that are able to outperform BTC over a longer period of time. Only in a bull market is it reasonably possible to make significantly more profits with altcoins than with bitcoin. However, as soon as the hype subsides and the bear market begins, the majority of altcoins lose significantly more than Bitcoin itself.

By the way: In the last bull market, hardly any established altcoin managed to surpass the ATH in BTC from the 2017 bull market. Neither ETH nor ADA were able to do so. For example, this is the ETH-BTC chart from Coinmarketcap where you can see, that ETH was in the last bull market far away from its BTC-ATH:

For a short period of holding an altcoin, you can definitely make a profit in BTC, but not in the long run.

Fivestar4everMVP

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Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.
Does trading with a bitcoin pair help us save fees in any way? For example, if I need to trade other altcoins, I need to first sell my bitcoin for USDT and then trade that altcoin with the USDT pair. In this process, I need to pay a double fee, so trading directly with a bitcoin pair will save me fees in any way?
How will I profit if the prices of altcoins match those of bitcoin? When I trade with the BTC pair, both will rise and fall simultaneously.

Well, to be honest, i do not know, and maybe i am willing to learn too. But then, in all my trading, I have always preferred to trade in USdt pair, whether it be bitcoin I am selling or buying, or any altcoin, i can only trade on Btc pair if the altcoin i am buying or selling does not have a usdt pair.

If nothing at all, one benefit I see with this is that, it helps me keep track of my profit and losses, since usdt is a stablecoin. we all know that Bitcoin is a volatile currency, trading against it with another volatile currency can cause confusion some times where as one may lose track of whether he or she trading in profit or loss, this is why I prefer to trade in Usdt pair so I don't get to face such confusion.

michellee

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You do not need to sell your Bitcoin for USDT. You can directly trade your Bitcoin with other altcoins. In this way, you only need to focus on increasing the profit in Bitcoin. Focus on making more profit so you will not think about the fees as the fees are not bigger than you thought.

You can try to make a profit of 1%-2% but do that many times so your profit will be bigger and we can assume the fees will remain the same in one time trade. People who trade altcoin with USDT pair want to increase their USDT to use it to buy Bitcoin when the price is down. But if you trade Bitcoin for an altcoins pair, you can have more Bitcoin as your profits.

Some altcoins can increase together so people who already buy altcoin using USDT can sell their altcoin for Bitcoin pairs. And that means your profit will be in Bitcoin. That is the way to increase your Bitcoin amount.

noorman0

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Quote from: cafter on October 06, 2023, 06:07:53 AM

-snip-
so trading directly with a bitcoin pair will save me fees in any way?

Yep, but that's a case of necessity.
Altcoins have the same price movements as bitcoin but generally they are more extreme. Someone dedicated to bitcoin accumulation makes this pair a favorite rather than stablecoins. This can also reduce the psychological effects of traders as they care less about the value, especially during bear market sessions.

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Quote from: Hamza2424 on October 13, 2023, 11:12:31 AM

Quote from: Saint-loup on October 12, 2023, 04:50:07 PM

You will only need to sell your Bitcoins for USDT if you don't deposit fiat money on the exchange or if you don't hold stablecoins. Sometimes it's better to hold stablecoins than Bitcoin, especially if you need to withdraw money from time to time and don't want to have to convert BTC in fiat when it is potentially at its lower price.

Hmm, Senior that is really considerable holding some of the stablecoins is really important for emergency funds, savings etc etc, even while planning the finance in risk investment markets we cant ignore the importance of stable money. I explained the most suitable currency holding the crypto market cycle in my above post.

No doubt Bitcoin is top of the line but according to the market conditions and sentiments we need to plan our moves, buying the dips requires the stable currency even planing the DCA for regular accumulation requires the stable-crrency.

especially for bearish seasons of course stable coins are very valuable just in case the price enters our buying area and we can buy them at the desired price with that stable coin. until finally we get more bitcoins and have the opportunity to make more profits too. This is because stable coins do not fluctuate so we can safely park our money before using it. So both have their respective roles and we must be able to distinguish them, Meanwhile, we can use Bitcoin with high fluctuations to make as much profit as possible, besides that it is the safest coin in the crypto world

Unbunplease

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BTC trading pairs have the highest liquidity. In addition, in these pairs you can make profit even when the whole market is in sideways movement (if you are lucky). I would like to note that BTC pairs are available on any exchange, which has a certain advantage

armanda90

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Trade with Bitcoin trading pair depend with price of bitcoin, if bitcoin have lower price on current price is worth for trading with bitcoin pair but I don't think profitable with using bitcoin pair trading when position on higher price. Usually less of exchange give an offer fee trade when using bitcoin pair, before BUSD announced removing in Binance I used this pair for trading because worth more without need to pay fees but right now have withdrew with this pair and all trading pair need to pay fee.
Regarding prefer trade with Bitcoin pair seems how to manage more profitable in the future depend on Bitcoin have lower price and not only get profit with altcoin trade but also bitcoin get profit with bitcoin when raising to higher price.

Hamza2424

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Quote from: Saint-loup on October 12, 2023, 04:50:07 PM

You will only need to sell your Bitcoins for USDT if you don't deposit fiat money on the exchange or if you don't hold stablecoins. Sometimes it's better to hold stablecoins than Bitcoin, especially if you need to withdraw money from time to time and don't want to have to convert BTC in fiat when it is potentially at its lower price.

Hmm, Senior that is really considerable holding some of the stablecoins is really important for emergency funds, savings etc etc, even while planning the finance in risk investment markets we cant ignore the importance of stable money. I explained the most suitable currency holding the crypto market cycle in my above post.

No doubt Bitcoin is top of the line but according to the market conditions and sentiments we need to plan our moves, buying the dips requires the stable currency even planing the DCA for regular accumulation requires the stable-crrency.

dumbymamby

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The exchange provides so many pairs that it is easy for traders to choose the coins they want.
But if you want to trade altcoins and bitcoin, you don't need to sell the bitcoin first but you can trade bitcoin with the altcoin pair. It just costs you more, in bitcoin and usdt.

Before you trade, you must decide whether to take profit in USDT or BTC. If it's USDT, you have to sell your BTC to USDT then you can trade. It is the same if you want to make a profit in the form of BTC. So you need to determine your profit in USDT or BTC.

doomloop

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Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.
Does trading with a bitcoin pair help us save fees in any way? For example, if I need to trade other altcoins, I need to first sell my bitcoin for USDT and then trade that altcoin with the USDT pair. In this process, I need to pay a double fee, so trading directly with a bitcoin pair will save me fees in any way?
How will I profit if the prices of altcoins match those of bitcoin? When I trade with the BTC pair, both will rise and fall simultaneously.

Some exchanges might offer free trading with Bitcoin fair but that isn't a feature everywhere, so the most probable advantage of the Bitcoin fair is that if you want to sell a certain cryptocurrency/altcoin and want to buy Bitcoin instead, you won't need to first sell that for a stablecoin and then buy Bitcoin which will obviously require double trading fees but you can simply sell that cryptocurrency against Bitcoin if the exchange you are using has a Bitcoin fair with that altcoin.

Traders barely use Bitcoin or other volatile cryptocurrency fairs when they are trading, they mostly use stablecoins because it makes the calculation easier and they are also not volatile and there won't be any issues even if they don't buy anything for a certain period after selling one cryptocurrency and taking profit which you can't do if you have traded your altcoin to another volatile cryptocurrency because it can devalue over time.

Yamane_Keto

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Quote from: Saint-loup on October 12, 2023, 04:50:07 PM

In addition there are interesting investments in stablecoins, and many people prefer gambling with them, so what you say about the double fees paying issue is not true for everybody.

I'm also starting to wonder at this kind of thinking, why do many people want to take the risk and buy stablecoins like USDT and lend them to get 5% interest when there is a bull market nearby that could double the price much faster than that.
The high liquidity that you find in stable currencies within platforms makes them an ideal tool for stealing customers’ money, as people tend to deposit and keep it on the platform in the hope of interest rather than withdrawing it as Bitcoin.

Saint-loup

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Quote from: cafter on October 06, 2023, 06:07:53 AM

I want to know why there are so many pairs available to trade on exchanges.
Does trading with a bitcoin pair help us save fees in any way? For example, if I need to trade other altcoins, I need to first sell my bitcoin for USDT and then trade that altcoin with the USDT pair. In this process, I need to pay a double fee, so trading directly with a bitcoin pair will save me fees in any way?
How will I profit if the prices of altcoins match those of bitcoin? When I trade with the BTC pair, both will rise and fall simultaneously.

You will only need to sell your Bitcoins for USDT if you don't deposit fiat money on the exchange or if you don't hold stablecoins. Sometimes it's better to hold stablecoins than Bitcoin, especially if you need to withdraw money from time to time and don't want to have to convert BTC in fiat when it is potentially at its lower price. In addition there are interesting investments in stablecoins, and many people prefer gambling with them, so what you say about the double fees paying issue is not true for everybody.

Yamane_Keto

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Transaction fees are small compared to the price of Bitcoin, as when you trade in the altcoin with Bitcoin pair, they must be very good, otherwise it is difficult for the altcoin to rise against Bitcoin, while this is possible in the USDT pair.
You can reduce the trading fee depending on the platform. Some platforms give you a discount if you use local tokens, use the converter command, buy some accounts, provide more data, etc. Search or ask here and we will help you reduce the fees, but following altcoin Bitcoin pair will not reduce fees.

there are many altcoins pairs because they pay for the exchange

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