#TradingPairs101
When choosing a trading pair for cryptocurrency trading, pay attention to liquidity, volatility, and risks. The most liquid pairs are those with high trading volume, such as BTC/USDT, ETH/USDT, and pairs known for their volatility can bring significant profits or losses. In case of risk, it is important to consider that liquid and modern pairs can have high risk, especially for beginners.
Some key aspects in choosing a trading pair:
1. Liquidity:
Make sure that the chosen trading pair has a high trading volume; this allows you to buy and sell cryptocurrencies quickly at competitive prices without a significant impact on the price.
2. Volatility:
Weigh whether you need a stable or volatile pair. Volatile pairs can bring higher profits, but they also carry higher risk.
3. Risks:
New and less-known pairs can be risky, especially for those who are just starting out. Choose pairs with a more stable history and high liquidity.
4. Your strategy:
Some strategies may be more successful with certain pairs than with others.
5. Market study:
Study charts, analyze news to understand trends.