📊 How to Choose the Right Trading Pair? A Practical Guide for Higher Profit Opportunities
1- 🎯 Define Your Goals and Risk Level
First, determine whether you are looking for quick trades or long-term investment.
Assess your ability to withstand volatility and drawdowns.
2- 💧 Analyze Liquidity and Trading Volume
Choose pairs with high liquidity (large Daily Volume) to facilitate your entry and exit from trades.
Popular pairs like BTC/USDT and ETH/USDT usually provide the best market depth.
3- 🌪️ Monitor Volatility
Increased volatility enhances profit opportunities, but carries greater risks.
Use the Average True Range (ATR) indicator to measure the average daily price movement.
4- 💸 Review Fees
Each pair has different Maker/Taker fees, so check them before trading.
Avoid repeating small trades if the fees are detrimental relative to their size.
5- 📈 Diversify and Avoid Relying on One Pair
Spread your capital across 2–3 pairs at most, based on your strategy.
This reduces risks associated with the performance of a single currency.
6- 🧠 Use Tools and Technical Signals
Utilize indicators like RSI and MACD to confirm your choices.
Keep track of fundamental news and its impact on each pair.
💡 Trader Tip:
Before every trade, have a clear entry and exit plan, and stick to it.
✅ Organization and adherence to the plan make the difference between profit and loss.
