When I first entered Binance, everything sounded strange to me:
What is Spot? What are Futures? What is Staking?
Today I'll explain the three, in a simple way:
1. Spot (cash)
You buy a crypto and it stays with you.
For example: You buy BTC for $50,000 and have it in your account. If it goes up, you profit; if it goes down, you lose.
Ideal for: beginners and long term.
2. Futures (trading with leverage)
You don't buy the crypto, you bet on whether it goes up or down, using leverage.
You can earn a lot... or lose everything very quickly.
Ideal only if you already have experience.
3. Staking (putting your cryptos to work)
You 'lock' them for a while or use flexible staking, and in return, they give you an annual %.
It's like a crypto fixed term.
Ideal if you don't want to trade but still want to earn some extra.
Over time, I tried all three... and I'll tell you something:
You don't need to use them all. Choose the one that suits you best.
Which one are you in now? Spot, Futures, or Staking?