When trading on the exchange, you come across cryptocurrency pairs in one way or another, because in order to obtain, for example, Bitcoin, you need to buy/exchange it for another currency/asset.
Most often, this “other asset” is USD, since it is a world currency, it is the most popular and massive, or USDT. Many people are accustomed to paying in dollars and translating the price into dollars, as it is just convenient.
When choosing trading pairs, it is important to pay attention to the following aspects:
Market capitalization. Coins with low market capitalization show quite strong price spikes even in a very short period of time. So, young altcoins sometimes grow by 150% in a couple of hours in the afternoon, and later fall by 400-600% in the evening. Therefore, we definitely need coins from the top 25.
Coin type. It is most convenient to trade with stablecoins, since you always know the rate of stablecoins, due to the fact that they are tied to a specific fiat asset. For example, USDT.
Coin graph. If during the day the coin shows strong jumps, even despite the large volume (as is often the case with XRP, for example), it is better not to use it as a trading pair and choose something smoother.
Latest news. The crypto market is based on news and it is important to understand the informational background of the coin you have chosen to trade.
So what does a list of the top five cryptocurrency pairs look like based on these criteria?
- BTC / ETH
- BTC / USDT
- ETH / USDT
- ETH / LTC
- BTC / LTC
Why them?
Bitcoin is considered the most important coin for a reason. If you see an increase in the price of BTC, you can safely trade for an increase in BTC relative to LTC and ETH. Because their growth of these three coins is often correlated with each other.
Choosing a USDT trading pair is a great option for traders as USDT is a stable asset. You can bet on the fall of BTC in price against the dollar and be sure that nothing happens to the paired coin.
It is best to trade these currency pairs on the Cryptology exchange, as we provide up to 100x leverage and the most favorable commissions.