5 Benefits of Spot Trading for Beginners
1. Instant Ownership: Buy/sell assets (like crypto or stocks) immediately at current prices. You own what you trade, right away—no waiting or complex contracts.
2. Lower Risk: No leverage (borrowed money) means you won’t lose more than you invest. Futures can amplify losses, but spot trading keeps risks clear and manageable.
3. Simpler to Learn: No expiry dates, margin calls, or confusing terms. Just straightforward trading based on real-time prices—perfect for practice.
4. Flexibility: Trade anytime without worrying about future price predictions. Hold assets long-term or sell quickly, depending on market moves.
5. Transparent Fees: Fewer hidden costs compared to futures, which often include funding fees, commissions, or liquidation penalties.