#CEXvsDEX101
**#TradingTypes101 – Know Your Trading Styles!**
Understanding the **3 core trading types**—**Spot, Margin, and Futures**—is the *foundation* of a strong crypto strategy. Each comes with unique features and risk profiles. Here’s a quick breakdown:
🔹 **Spot Trading**:
Buy/sell crypto at the current market price. You own the asset directly. Great for beginners and long-term holders.
🔹 **Margin Trading**:
Trade with borrowed funds to increase buying power. Higher potential gains, but also higher risk—be careful with leverage!
🔹 **Futures Trading**:
Speculate on future prices without owning the actual asset. Ideal for advanced traders who understand market trends and risk management.
📌 **When to use them?**
✅ *Spot* – Long-term holding or simple buy-and-hold strategies.
✅ *Margin* – When confident in short-term price movements and using tight risk controls.
✅ *Futures* – For hedging, shorting, or high-leverage trading with a clear plan.
💡 **Pro Tips for Beginners:**
1. Start with Spot trading to learn market behavior.
2. Never risk more than you can afford to lose.
3. Use stop-losses and always have a plan.
4. Study market trends before using leverage!
👉 Share your thoughts with #TradingTypes101 and earn Binance Points! Let’s learn together—what type of trading do YOU use most, and why#Write2Earn $DEXE