$SOL (Solana) pair trading can be a profitable strategy in crypto, but like all trading methods, it comes with risks. Here’s a breakdown to help assess whether it’s a good fit for your goals:

Pair trading involves trading SOL against another cryptocurrency (like SOL/ETH, SOL/BTC, or SOL/USDT), taking advantage of relative price movements between the two.

High Liquidity SOL is widely traded and has deep liquidity across major exchanges.

Strong Ecosystem With DeFi, NFTs, and L1 adoption, SOL has fundamental strength and active developer support.

High short-term volatility can create arbitrage or pair-trading opportunities.

Correlation Opportunities SOL often shows correlation (or divergence) from other Layer 1s like ETH or AVAX, which traders can exploit.