#TradingTypes101
Understanding the different types of crypto trading is key to building a strategy that suits your goals and risk profile. Here’s a breakdown:
1. Spot Trading - is the most straightforward—buy or sell crypto for immediate delivery. Ideal for beginners and long-term investors.
2. Margin Trading- allows you to borrow funds to increase your position size. Higher potential gains—but also higher risk. Use with caution.
3. Futures Trading - involves contracts to buy/sell crypto at a future date. Great for hedging or shorting the market, but requires experience due to leverage and volatility.
🛠 Which do I use most?
Spot trading.
It’s safer and perfect for building a solid portfolio.
💡 Tips for beginners:
• Start with spot trading to learn market dynamics
• Don’t over-leverage in margin or futures
• Always use stop-loss and manage risk wisely
Which trading type do you prefer and why?
Let’s learn together! 🚀
