#TradingPairs101

My considerations on how to choose the best strategy for profitable pairs on Binance.

To select a trading pair with good potential, it is key to align the strategy with market behavior and the trader's profile. These are the main factors to consider:

1. Volatility and liquidity

- Pairs with high liquidity (like BTC/USDT or ETH/USDT) are ideal for short-term strategies (scalping or day trading), as they allow for quick entries and exits with reduced spreads.

- More volatile pairs (like low-cap altcoins) can offer greater profits, but they also carry more risk.

2. Trends and momentum

- Identify pairs with clear trends (bullish or bearish) using technical analysis (moving averages, RSI, MACD).

- Avoid trading in narrow sideways ranges if you are looking for significant movements.

3. News and fundamentals

- Events like network updates, listings on Binance, or partnerships can boost a pair.

- Monitor reliable sources to anticipate movements based on fundamentals.

4. Correlation with Bitcoin and the overall market

- Many altcoins follow BTC's movement. If Bitcoin is in a sideways phase, some pairs may show greater independence.

5. Fit to trading style

- Scalpers: Pairs with minimal spreads and high liquidity.

- Swing traders: Pairs with medium volatility and sustained trends.

- Long-term investors: Solid projects with strong fundamentals.

Conclusion: There is no perfect pair for everyone. The best strategy depends on analyzing liquidity, volatility, trends, and news, always adapting to the trader's risk and time horizon. Test in demo before risking real capital.

I hope you found the reading enjoyable.

Thank you for your time and feedback.