The best cryptocurrency pairs to trade
The cryptocurrency market is made up of over 2,000 assets with varying prices, trading volumes, capitalization, and popularity.
For example, you might find that the most valuable asset is 42-coin, which has an exchange rate of around $ 20,000.
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The cryptocurrency market is made up of over 2,000 assets with varying prices, trading volumes , capitalization, and popularity.
For example, you might find that the most valuable asset is 42-coin, which has an exchange rate of around $ 20,000. However, it is not suitable for trading. The main reason why this coin is not listed on many exchanges is because it has low liquidity.
You will therefore realize that among some 2,000 assets, ten of them are actually used for trading. Therefore, what are the best cryptocurrency pairs to trade?
How to choose them correctly? Take a look below.
How to choose the best cryptocurrency pairs to trade?
All traders only enter the market after performing a great analysis. They first perform the fundamental analysis of a few cryptocurrencies to choose an asset that should bring them the greatest profit.
Then, they perform technical analysis of cryptocurrency pairs to understand market trends and behavior.
However, fundamental and technical analysis will not allow you to start trading . You have to choose the best trading pair. It sounds simple, but if you pick the wrong pair, you will only make a small profit or even a loss.
First, you need to analyze which pairs are popular on most exchanges . As usual, we can see a lot of orders with the coin to USD pair.
On the subject of cryptocurrency pairs, the most popular are BTC / ETH, BTC / LTC, USDT / BTC, ETH / LTC and a few others.
These pairs are popular because there is a worldwide demand for bitcoin, ethereum, litecoin, and other parallel cryptocurrencies. Therefore, traders can easily find buyers at the right time.
View the trading volume of different cryptocurrencies and then find their connection with other assets. This is the best way to find good trading pairs in the market if you don't want to trade bitcoin, ethereum, or bitcoin cash.
What about liquidity?
Liquidity is the main factor that affects the choice of cryptocurrency pairs to trade. This refers to the ability to sell assets quickly.
The higher the liquidity, the more opportunities you will have in the market. In addition, it defines the profit that you could make from each transaction.
Liquidity is not only about the speed of order closing, but also the level of risk. So, if you still have buyers, you won't lose to a downtrend. Plus, you won't need to set a low exchange rate to make an asset attractive to buyers.
Demand for a cryptocurrency generally affects its liquidity. This is why BTC, LTC, ETH, USDT, BCH, BNB, and other assets are the top choices for the best cryptocurrency pairs.
What base currency to use?
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Everyone has heard of bitcoin. Although this cryptocurrency is not the best from a technical standpoint, it is one of the best for trading. Simply because most people want to buy bitcoin.
This is the reason why the best base currency to use for most pairs is bitcoin. Even Coinmarketcap gives a bitcoin exchange rate for each cryptocurrency. BTC is listed on all exchanges, so if it's in your pair, you will have plenty of trading opportunities.
Ethereum is also a good choice for trading pairs. It is almost as popular as bitcoin, and the main reason is the smart contracts of the Ethereum platform. ETH therefore has a high demand all over the world, and therefore you can choose from many cryptocurrencies with which to exchange it.
The third basic cryptocurrency for many pairs is the USDT. It only became popular a year ago and is one of the best stable corners. The USDT is used around the world because its exchange rate is pegged to the USD, but it provides all the benefits of cryptocurrency. That's why more and more exchanges are adding tether to their lists.
Today, the USDT has the highest trading volume in 24 hours and is one of the highest liquidity. So you can easily choose it for many pairs.
What are the advantages of one pair over another?
There are not so many advantages if we are talking about popular trading pairs. All of them offer good trading possibilities and high profits.
However, some pairs may be preferable. It mainly depends on the exchange you are trading with.
Most exchanges show the highest volume on BTC / ETH pairs, as these two cryptocurrencies have been added to all listings.
However, BKEX, for example, has EOS / USDT as its best trading pair. So there are more opportunities to trade EOS here, rather than ETH or BTC.
The following example is for the LTC / BTC pair. A few years ago it was the most popular trading pair on many exchanges.
However, today it is better to trade LTC / USDT rather than LTC / BTC. Why ? Simply because LTC / USDT has greater trading volume and greater liquidity, according to Coinmarketcap.
So there are two advantages to choosing one pair over another.
First of all, by choosing the defined pair, you will be able to make more profit. Second, you will have more buyers so that you can close more orders during the trading day.
The best cryptocurrencies for trading based on the past year
Interesting read: Top crypos to buy today
Every year the trading pairs change due to different factors.
First of all, new cryptocurrencies are released. Second, some projects do good updates so that their assets become more popular in the market. Third, some news affects the market, so that different assets lose their demand.
It is important to analyze the best cryptocurrency pairs to trade in recent years, as it helps in understanding the market. This will allow you to choose pairs for future trading and your investment portfolio.
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The start of 2021 showed that BTC sets all trends in the market, so most pairs were connected to this cryptocurrency.
Many innovative projects had not been published at the time, so traders relied on trusted assets such as bitcoin, ethereum, litecoin, and bitcoin cash.
All of them had high demand and high liquidity. For many businesses, bitcoin cash has even become preferable to the original bitcoin.
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Ripple became the discovery of the year. Although it was released in 2012, many banks and other organizations only recognized it in 2021.
However, in mid-2018, the Ripple blockchain was used as an alternative for major global banks like MUFG or Banco Santander.
Hence the best cryptocurrency trading pairs this year:
BUSD/BIRD
BTC / ETH;
ETH / BTC;
XRP / BTC;
XRP/LTC ;
BCH / ETH;
ETH / XRP.
Best cypto pairs this year
This year became the year of changes in the cryptocurrency market, as many new projects appeared. More and more people were disappointed with BTC, so its trading volume fell.
EOS was also released and became the main competitor of ETH. Binance Exchange created its own asset called the Binance Coin, which has become popular on many exchanges.
The most important fact is probably that LTC and BCH have been replaced by new projects. Today, BCH and LTC have good trading volumes and good liquidity, but they are not even in the top 10 trading pairs.
Therefore, in 2019, BTC / USDT became the best trading pair. Additionally, this pair has become the most popular pair in all of cryptocurrency history. Many analysts strongly advise beginners to start with the BTC / USDT (USDT / BTC) pair as it provides the best liquidity. This allows traders to enter the market on a budget and close many positions.
Other popular trading pairs for THIS YEAR were:
BUSD/BIRD
BTC / ETH;
XRP / BTC;
XRP / ETH;
USDT/XRP ;
ETH / USDT.
The best cryptocurrency pairs to trade in 2021
And now ? The cryptocurrency market has become more popular across the world. Many countries are looking to implement certain assets as alternative means of payment. This is why many cryptocurrencies have become more stable and accessible for trading.
As said before, the USDT exchange rate is currently the highest. Therefore, pairs like USDT / BTC, USDT / XRP, USDT / ETH, USDT / EOS and so on will be very popular in 2021. You can easily enter the market with 100 USDT and make big profit.
In addition, EOS has provided some updates, so its blockchain has become faster and more secure.
The popularity of the EOS coin has therefore increased on many exchanges. Pairs such as EOS / USDT, EOS / LTC, and EOS / BTC exhibit high trading volume.
Finally, many organizations have recognized that Tron is one of the best platforms for exchanging content. The Tron Foundation therefore gained new investors and the price of TRX increased slightly.
TRX / BTC, TRX / XRP and TRX / ETH are very popular trading pairs in the Asian market. If you are trading on OKEx or Huobi, pay close attention to TRX trading pairs.
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