#TradingPairs101 When choosing a trading pair for cryptocurrency trading, pay attention to liquidity, volatility, and risks. The most liquid pairs are those with high trading volumes, such as BTC/USDT, ETH/USDT, while pairs known for their volatility can yield substantial profits or losses. In terms of risk, it is important to consider that some liquid and trendy pairs can carry high risk, especially for beginners.
Several key aspects of choosing a trading pair:
1. Liquidity:
Ensure that the chosen trading pair has a high trading volume, allowing for quick buying and selling of cryptocurrency at competitive prices without significantly impacting the price.
2. Volatility:
Weigh whether you need a stable or volatile pair. Volatile pairs can yield higher profits but also carry greater risk.
3. Risks:
New and lesser-known pairs can be risky, especially for those just starting out. Choose pairs with a more stable history and high liquidity.
4. Your strategy:
Some strategies may be more successful with certain pairs than others.
5. Market study:
Study the charts, analyze news to understand trends.
Something like that.