#交易对 In-Depth Analysis: The Cornerstone of Strategy Selection

In cryptocurrency trading, trading pairs (such as BTC/USDT) consist of a base asset (BTC) and a quote asset (USDT), where the former is the asset being traded 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 clearly reflect the actual rise and fall of the base asset, avoiding interference from the volatility of dual currencies. Conversely, coin-to-coin pairs (such as ETH/BTC) are suitable for arbitrage or bullish scenarios on the quote currency.

Choosing a trading pair requires consideration of three points:

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

2️⃣ Volatility Matching: Low volatility pairs (stablecoin pairs) are suitable for short-term trades, while high volatility pairs (small-cap coins) require a higher risk tolerance;

3️⃣ Correlation: Avoid simultaneously holding strongly positively correlated trading pairs (such as ETH/BTC and LTC/BTC) to prevent systemic risk.