What are trading pairs, symbols, and why are stablecoins needed? Why do you need to be careful with the margin? You will find answers to these and other questions in the new LATOKEN review!
Choosing a crypto exchange
Before investing in cryptocurrency, you need to choose the right exchange. Among the important factors is the history of the crypto exchange. It is worth ensuring that the site has been successfully operating for several years and users do not complain about problems with the withdrawal of funds. Otherwise, you can lose your money and even become a victim of a crypto scam.
One of the critical factors to look out for is the interface. It should be clear and user-friendly. You also need to check the trading volumes and select only large trading platforms. For example, LATOKEN is an international cutting-edge crypto exchange, and it has been successfully operating since 2017 with zero cases of security breaches.
Another important factor about trading pairs
When choosing an exchange, it is important to consider the number of trading pairs. The more there are, the higher the opportunities for trading and investing. For example, more than 700 trading pairs are on the LATOKEN exchange, and new ones with proven and promising altcoins are added weekly.
However, too many assets can be alarming. Sometimes trading platforms add many little-known projects – this is one of the ways to make money. Users run the risk of investing in a fraudulent token and becoming victims of a crypto scam. Pay attention to the capitalization of the project.
Why pair? LATOKEN review
Assets are traded in pairs. For example, the current bitcoin price of $56,000 is a cryptocurrency trading pair with the US dollar. The first currency is called the base currency. In this case, it is Bitcoin. The second currency is called the quoted currency (dollar).
Trading pairs initially emerged with the formation of the Forex market in 1978 after the IMF allowed local currencies to abandon their peg to the dollar and gold reserves.
For convenience, cryptocurrencies in trading pairs are indicated by symbols. This is a short designation. For example, Bitcoin’s symbol is BTC; Tether is USDT. The Bitcoin and Tether trading pair will look like this: BTC/USDT.
Symbols on all crypto exchanges look the same to avoid confusion. However, it sometimes happens due to their similarity. For example, the Bitcoin Cash cryptocurrency symbol is BCH, which can be confused with Bitcoin (BTC). What can we say about the many meme tokens inspired by Shiba Inu! BitShiba, King Shiba, Shiba Inu Empire, ShibElon… Insane, right?
By the way, you can trade all these meme coins on the LATOKEN exchange!START TRADING ALTCOINS
How to choose a trading pair
There are several things to look out for when choosing a trading pair. Let’s dwell on them in more detail in the following cards. It would be wrong to stop at 2-3 trading pairs, although it may seem safe. It’s worth looking into the tokens of the most talked-about tokens from time to time. However, keep in mind that you should always do your own research before trading this or that token.
Currency or stablecoin?
Cryptocurrencies are traded in pairs with stablecoins like USDT, which we have already mentioned. It is a tokenized US dollar. Such contracts are called line contracts. But at the same time, there are pairs with the original fiat currency, for example, the dollar (USD).
If the goal is to take profit but leave funds in crypto, you can use a trading pair with USDT or other stablecoins. However, if the purpose of the sale is to withdraw funds, then it may be easier to choose pairs with the US dollar.
Liquidity is the property of an asset to be sold as quickly as possible at a price close to the market average. It is necessary to choose liquid pairs in order to be able to quickly execute a trade. Large exchanges such as LATOKEN have consistently sufficient liquidity for popular pairs.
The liquidity of a trading pair is one of the most critical factors. Often, crypto exchanges delist pairs that do not pass by this indicator.
Availability of margin trading
Some trading pairs are leveraged. In this case, the user will be able to borrow funds from the exchange to buy or sell to increase the likely profit from the transaction.
Margin trading conditions differ on each exchange. Therefore, you must carefully read them before you start trading.
Let’s repeat? LATOKEN review
First, you need to decide on the choice of a crypto exchange. Then take a close look at the study of trading pairs. It is necessary to work on large platforms with liquid pairs to reduce risks. You should also pay attention to the order book and decide on the quoted currency.
It is important to choose a well-known and reliable crypto exchange with many users, such as LATOKEN.
If you follow the simple rules described above in our LATOKEN review, you can make your trading the most efficient and safe and not become a victim of a crypto scam or a LATOKEN scam!
Do you want to learn more about the most promising tokens through LATOKEN Review, and always stay up to date? To do this, just follow us on Medium, LATOKEN Blog, or LATOKEN VCTV channels.
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.