#交易对 Deep Analysis: The Cornerstone of Strategy Selection

In cryptocurrency trading, trading pairs (such as BTC/USDT) consist of the underlying asset (BTC) and the quoted asset (USDT), where the former is the trading object and the latter is the pricing unit. The choice of trading pair 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 accurately reflect the true ups and downs of the underlying asset and avoid the interference of dual-coin volatility in judgment. On the other hand, coin-to-coin pairs (such as ETH/BTC) are suitable for arbitrage or bullish scenarios on the quoted currency.

When selecting a trading pair, three points need to be considered:

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

2️⃣ Volatility Matching: Low volatility pairs (stablecoin pairs) are suitable for short-term trading, 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.