#TradingTypes101 🚀 To build a solid trading strategy 📊 it is essential to understand the differences between spot trading, margin trading, and futures trading.
🔹 Spot Trading: You buy and sell the actual asset. It is ideal for those looking to accumulate cryptocurrencies for the long term without leverage or liquidation risk.
🔹 Margin Trading: It allows you to trade with borrowed funds, increasing your buying or selling power. It is useful for experienced traders who want to amplify profits on short-term movements, although it also increases risks.
🔹 Futures: You trade with derivative contracts that allow you to open long or short positions with high leverage. They are perfect for speculative or hedging strategies but require discipline and risk management.
📌 When to use each one?
🔶 Spot: to accumulate or start trading.
🔶 Margin: to take advantage of more defined movements with moderate risk.
🔶 Futures: for those who master the technique and have emotional control.
Understanding these differences is key to defining your risk profile and choosing the right vehicle for each market scenario.