#TradingPairs101 Trading pairs are the foundation of the crypto market, connecting assets into a single system. A well-thought-out choice of pair can significantly impact profit, order execution speed, and risk management.
- Direct trading pairs (e.g., BTC/USDT) increase liquidity, reducing spreads and volatility.
- The more pairs available for an asset (for example, ETH can be traded against BTC, USDT, BNB, etc.), the easier it is to enter/exit a position; Binance is very good in this regard.
Direct exchange (e.g., LTC/BTC) eliminates the need to convert assets through intermediate steps (LTC → USDT → BTC), which reduces fees and slippage.
. Arbitrage opportunities
- The price difference for the same pairs between exchanges (e.g., BTC/EUR on Binance and Kraken) creates arbitrage.
- Triangular arbitrage uses three related pairs (e.g., BTC/USDT → USDT/ETH → ETH/BTC). #BinanceAlphaAlert $XRP $SOL