#交易对 In-depth Analysis: The Cornerstone of Strategy Selection

In cryptocurrency trading, trading pairs (such as BTC/USDT) consist of the base asset (BTC) and the quote asset (USDT), where the former is the trading object and the latter is the pricing unit. The choice of trading pairs directly affects the efficiency of strategy execution and risk management.

I prefer stablecoin trading pairs (such as BTC/USDT) due to their lower volatility, which can more clearly reflect the actual rise and fall of the base asset, avoiding interference from the volatility of dual currencies. On the other hand, coin-to-coin pairs (such as ETH/BTC) are suitable for arbitrage or bullish scenarios on the quote currency.

Choosing trading pairs requires consideration of three points:

1️⃣ Liquidity: High liquidity (such as mainstream coin pairs) reduces slippage;

2️⃣ Volatility Matching: Low volatility pairs (stablecoin pairs) are suitable for short-term trades, while high volatility pairs (small coins) require a higher risk tolerance;

3️⃣ Correlation: Avoid holding strongly positively correlated trading pairs simultaneously (such as ETH/BTC and LTC/BTC) to prevent systemic risk.