#TradingPairs101 How to choose the right pairs in crypto trading
Choosing the trading pair is one of the first strategic steps for every trader. Not all are suitable for the same objectives.
What to consider:
Liquidity: prefer pairs with high volumes (e.g., BTC/USDT) to reduce slippage.
Volatility: more volatile pairs offer more opportunities but also greater risk.
Stability of the base: choose a strong base coin (USDT, USDC, BTC, ETH) to reduce exposure to instability.
Correlation: avoid overly correlated pairs.
Common types:
Major: main coins against stablecoins (e.g., ETH/USDC).
Cross: crypto against crypto.
Exotic: smaller altcoins with low liquidity and high speculation.
Choosing the pair wisely means better controlling risk, spread, and opportunities.