#TradingPairs101 How to choose the right pairs in crypto trading

Choosing a trading pair is one of the first strategic steps for any trader. Not all pairs are suitable for the same goals.

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 higher risk.

Stability of the base: choose a strong base coin (USDT, USDC, BTC, ETH) to reduce exposure to instability.

Correlation: avoid pairs that are too correlated.

Common types:

Major: main coins against stablecoins (e.g. ETH/USDC).

Cross: crypto against crypto.

Exotic: minor altcoins with low liquidity and high speculation.