#TradingTypes101 Great! Let’s break down #TradingTypes101 — a beginner-friendly guide to the main types of trading you can do on platforms like Binance and in general crypto markets.

📘 #TradingTypes101 – Explained Simply

Here are the main types of trading you should know:

1. 🟢 Spot Trading – "Buy now, own now"

Definition:

You buy/sell crypto at the current market price, and you own it instantly.

Example:

Buy 0.01 BTC at $67,000. Now you hold 0.01 BTC in your wallet.

✅ Best for beginners

✅ No borrowing or leverage

❌ No big profits unless price moves a lot

🔸On Binance: Go to Trade > Spot

2. 🟡 Margin Trading – "Trade with borrowed money"

Definition:

You borrow funds to increase your trade size. This increases potential profits and risk.

Example:

With $100, you trade $300 (3x leverage). If BTC goes up 10%, you profit more. If it goes down 10%, you lose more.

✅ Higher potential gains

❌ High risk — can lose all

⚠️ Not for beginners

3. 🔴 Futures Trading – "Speculate on price (without owning)"

Definition:

You predict whether the price will go up (Long) or down (Short). You don't own the asset — just trade the price direction.

Example:

You "go Long" on BTC at $67,000 with 10x leverage. BTC goes to $68,000 → You make profit.

If it drops → You can get liquidated (lose it all).

✅ Profit in both rising or falling markets

❌ Very high risk

⚠️ Only if you understand liquidation, leverage, funding rates

4. 🔵 P2P Trading (Peer-to-Peer) – "Buy/Sell using local currency"

Definition:

You trade directly with other people, often using your bank account or mobile money (like in Sri Lanka, via bank transfer).

Example:

You buy 100 USDT from a seller, pay them LKR to their bank, and get crypto in return.

✅ Great for locals (e.g., LKR to USDT)

✅ No trading fees

❌ Must beware of scams (only use Binance escrow)

5. 🟠 Copy Trading / Grid Bots – "Automated trading"

Definition:

Use bots or copy expert traders' strategies.

Copy Trading – Copy someone else’s trades

Grid Bots – Buy low, sell high