#Circle扩大IPO规模 In-depth Analysis: The Cornerstone of Strategy Selection

In cryptocurrency trading, trading pairs (such as BTC/USDT) consist of the underlying asset (BTC) and the quote asset (USDT), where the former is the trading object and the latter is the pricing unit. Choosing a trading pair directly affects the efficiency of strategy execution and risk management.

I prefer stablecoin trading pairs (such as BTC/USDT) because they have lower volatility, allowing for a clearer reflection of the actual rise and fall of the underlying asset, avoiding interference in judgment from dual-coin volatility. Meanwhile, coin-to-coin pairs (such as ETH/BTC) are suitable for arbitrage or bullish scenarios on the quote coin.

Three points need to be considered when selecting a trading pair:

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.