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

1 answers

• qwerAug 06, 2022 · 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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