Is it better to trade major cryptocurrency pairs or less popular ones today?

3 answers

• Dec 18, 2021 · 3 years ago
  Trading major cryptocurrency pairs can offer several advantages. Firstly, major pairs tend to have higher liquidity, which means it's easier to buy or sell them without significantly impacting their prices. This can be beneficial for traders who want to enter or exit positions quickly. Additionally, major pairs often have lower spreads, reducing transaction costs. However, major pairs may also be more volatile and subject to market manipulation due to their popularity. It's important to stay updated with market news and analysis to make informed trading decisions.
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• Dec 18, 2021 · 3 years ago
  On the other hand, trading less popular cryptocurrency pairs can present unique opportunities. These pairs may have lower liquidity and higher spreads, but they can also offer higher potential returns. Less popular coins often experience significant price movements, especially when there is positive news or developments related to the project. However, it's crucial to conduct thorough research and due diligence before trading less popular pairs, as they may carry higher risks. It's recommended to consider factors such as project fundamentals, team credibility, and market sentiment.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, suggests that traders diversify their portfolio by trading a mix of major pairs and less popular ones. This approach allows traders to benefit from the stability and liquidity of major pairs while also taking advantage of potential growth opportunities in less popular coins. By diversifying, traders can spread their risks and potentially maximize their profits. However, it's important to carefully manage risk and set appropriate stop-loss orders to protect against unexpected market movements.
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