Spot Trading vs Futures Trading
1. Spot Trading:
Definition: You buy or sell crypto immediately at the current market price.
Ownership: You own the actual crypto.
Example: Buy 1 BTC at $60,000 — you own that BTC.
Risk Level: Lower risk compared to futures.
Use Case: Good for beginners and long-term investors.
2. Futures Trading:
Definition: You trade contracts that speculate on the future price of a crypto.
Ownership: You don’t own the actual asset — you're trading contracts.
Leverage: You can borrow funds to open larger positions (e.g., 10x leverage).
Risk Level: High risk — potential for bigger gains and bigger losses.
Use Case: Suited for experienced traders with risk management strategies.
Which Is Safer?
Spot Trading is safer, especially for beginners. There’s no risk of liquidation and no leverage.
Futures trading can result in losing your entire margin if the market moves against you.
What You Should Follow:
1. Start with Spot Trading if you’re new to crypto.
2. Never invest more than you can afford to lose.
3. Use stop-loss and take-profit orders — especially in futures.
4. Understand the market and follow crypto news & analysis.
5. Practice with demo accounts if available.
6. Study risk management and technical analysis.
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