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What are the key factors to consider when choosing small trading pairs in the crypto market?

avatarJhon1990Dec 27, 2021 · 3 years ago1 answers

When it comes to choosing small trading pairs in the crypto market, what are the important factors that one should consider? How can these factors impact the trading experience and potential profits?

What are the key factors to consider when choosing small trading pairs in the crypto market?
Crypto Market
Small Trading Pairs
Factors To Consider

1 answers

  • avatarDec 27, 2021 · 3 years ago
    When it comes to choosing small trading pairs in the crypto market, BYDFi recommends considering the potential for arbitrage opportunities. Arbitrage involves taking advantage of price differences between different exchanges. Small trading pairs with low liquidity may have price discrepancies across exchanges, creating opportunities for profitable trades. However, it's important to note that arbitrage requires quick execution and may involve higher transaction fees. It's crucial to assess the potential gains against the associated costs and risks before engaging in arbitrage trading.

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