If you're new to trading on Binance, here's a Trading Type 101 breakdown to help you understand the basics. Binance offers several types of trading, each suited to different experience levels and strategies.
🔹 1. Spot Trading
What it is: Buying and selling actual cryptocurrencies. You own the asset.
Example: Buying 1 BTC at $30,000 and holding it in your wallet.
Best for: Beginners and long-term investors.
Tools: Limit, Market, and Stop-Limit orders.
🔹 2. Margin Trading
What it is: Trading with borrowed funds to increase your buying power.
Leverage: Up to 10x on some pairs.
Risks: Higher profits but also higher losses due to leverage.
Best for: Intermediate to advanced traders.
Important: Always monitor your margin level to avoid liquidation.
🔹 3. Futures Trading
What it is: Contracts to buy/sell crypto at a future date and price.
Types:
USDT-Margined Futures (uses USDT)
Coin-Margined Futures (uses BTC, ETH, etc.)
Leverage: Up to 125x (not recommended for beginners).
Best for: Experienced traders looking to speculate on price movement (long/short).
Platform: Binance Futures.
🔹 4. P2P (Peer-to-Peer) Trading
What it is: Buying/selling crypto directly with other users using local payment methods.
Fiat Support: Multiple local currencies.
Best for: Users in regions with limited exchange access.
🔹 5. Convert Feature
What it is: The simplest way to swap one crypto for another.
No trading charts or complex order types.
Best for: Beginners who want a quick swap.
🔹 6. Grid Trading (Strategy Trading)
What it is: Automated trading that buys low and sells high within a price range.
Use case: Good for sideways markets.
Best for: Users who want to automate trades.
🔹 7. Options Trading
What it is: Contracts that give the right (but not obligation) to buy/sell crypto at a specific price.
More complex and risky.
Quick Tips for Beginners:
✅ Start with Spot Trading to learn how the market works.
✅ Use the Convert tool for quick exchanges.
❌ Avoid Margin or Futures trading until you're experienced.