#TradingTypes101 Crypto trading offers multiple strategies—each with unique risks and rewards. Here’s a breakdown of the most common types:

1. Spot Trading

- Buy/sell crypto at current market prices (e.g., Bitcoin for USD).

- Simple, low-risk (if holding long-term), but slower profits.

2. Day Trading

- Open and close positions within a single day to capitalize on short-term volatility.

- Requires technical analysis skills and constant monitoring.

3. Swing Trading

- Hold assets for days/weeks, profiting from medium-term trends.

- Less stressful than day trading but still risky.

4. Scalping

- Make tiny, rapid trades (seconds/minutes) to exploit minor price changes.

- High-frequency, high-stress, and fee-sensitive.

5. Futures & Margin Trading

- Trade with leverage (borrowed funds), amplifying gains (or losses).

- Riskier—liquidation possible if the market moves against you.

6. Arbitrage

- Buy low on one exchange, sell high on another.

- Profits are small and require fast execution.

7. Algorithmic Trading

- Use bots to automate strategies based on pre-set rules.

- Requires coding knowledge and backtesting.

Choose wisely! Beginners should start with spot trading before diving into leveraged or high-speed strategies.