On the basis of which factors should one select the trading pairs?

<p id="isPasted">Selecting the right trading pairs in 2025 depends on balancing technical market conditions with your personal trading style and goals.</p><p><strong>1. Market Liquidity and Volume</strong></p><p>Liquidity is the most critical factor for most traders as it ensures you can enter or exit trades quickly with minimal price gaps.&nbsp;</p><ul><li>Major Pairs: Pairs like EUR/USD, USD/JPY, and GBP/USD have the highest trading volumes, leading to tighter spreads and lower transaction costs.</li><li>Slippage Risk: Low-liquidity "exotic" pairs (e.g., USD/TRY or USD/ZAR) can suffer from slippage, where your order is filled at a significantly worse price than expected. </li></ul><p><strong>2. Volatility and Trading Style</strong></p><p>Volatility dictates the potential for profit—and loss—within a specific timeframe.&nbsp;</p><ul><li>Scalpers &amp; Day Traders: Prefer highly liquid pairs with moderate to high volatility during active sessions, such as GBP/USD or USD/JPY, to capture small, fast movements.</li><li>Swing &amp; Position Traders: Often choose pairs with steady, long-term trends. In 2025, JPY-based pairs have been noted for reliable trend reversals following central bank policy shifts.</li><li>Risk-Averse Traders: May stick to stable crosses like EUR/GBP, which tend to be less volatile and more range-bound. </li></ul><p><strong>3. Trading Session and Time Zones</strong></p><p>A pair is most active when the markets of its constituent currencies are open.&nbsp;</p><ul><li>Asian Session: Focus on JPY or AUD pairs (e.g., USD/JPY, AUD/USD).</li><li>London/New York Overlap: This is the peak time for liquidity and movement in EUR/USD and GBP/USD.</li><li>Rule of Thumb: Choose pairs that are "awake" during your available trading hours to ensure sufficient price movement. </li></ul><p><strong>4. Fundamental Drivers and Correlation</strong></p><p>Understanding what moves a pair helps you anticipate price action.&nbsp;</p><ul><li>Commodity Linkages: AUD/USD, USD/CAD, and NZD/USD are heavily influenced by the prices of resources like gold, oil, and dairy.</li><li>Safe Havens: During geopolitical uncertainty in 2025, currencies like the Japanese Yen (JPY) and Swiss Franc (CHF) often gain strength against the US Dollar.</li><li>Central Bank Divergence: Many 2025 opportunities are driven by the difference between interest rate policies (e.g., the U.S. Federal Reserve vs. the Bank of Japan).&nbsp;</li><li>5. Cryptocurrency-Specific Factors (if applicable)</li><li>For crypto traders, pair selection includes additional layers of risk.&nbsp;</li><li>Base Asset Selection: Decide if you want to accumulate fiat (e.g., BTC/USDT) or grow your holdings in a major asset (e.g., ETH/BTC).</li><li>BTC Dominance: Tracking Bitcoin’s dominance is vital, as altcoins </li></ul>