Good trading pairs to start with#
In this page, we discuss about some “easy” pairs for technical analysis and automatic trading.
Challenges of DeFi markets and trading#
Decentralised finance is challenging as the market is immature ane volatile
There is no historical data, as most trading pairs are very new with less than two years of history.
Trading data is spotty; DeFi markets have been more illiquid than CEX for a long time, although this is now changing. There might minutes or somestimes even hours without trades. (See OHLCV Candle format page why Trading Strategy candle data is sparse for this reason.)
Many DeFi tokens suffer for starups issues. 80% of startups die young.
MEV and other bots cause large wicks in candles, because they can do arbitrary size trades without fear of loss. OHLC candle high and low may be very arbitrary values that do not reflect the overall market price honestly.
Pairs trade do not trade against a stablecoin, but a volatile cryptocurrency quote token.
Good DeFi trading pairs#
Good and easy DeFi trading pairs are once with long history, robust organisation backing up the token, good price data and deep liquidity.
Here is a short list of some hand picked trading pairs with some history to start analyse. These pairs where chosen for the good data availability. Older DEX pairs usually have higher fees (0.30%) and nowadays the same pair may appear with a lower fee tier on the same or a a different exchange.
(Ethereum mainnet has prohibitive transaction fees)