#TradingTypes101

#TradingTypes101

In the world of crypto, understanding different trading types is essential to make informed decisions. On Binance, three key trading styles dominate: spot trading, margin trading, and futures trading.

Spot trading is the most straightforward—buy and sell cryptocurrencies at current market prices. It’s ideal for beginners looking to build and hold their portfolio.

Margin trading allows users to borrow funds to amplify their positions. While it offers the potential for higher returns, it also increases risk, making it better suited for experienced traders.

Futures trading involves contracts to buy or sell crypto at a later date, often used to speculate on price movements or hedge existing holdings. Binance Futures offers leverage, which can multiply gains—but also losses.

Each trading type offers unique opportunities and risks. Choose based on your goals, risk tolerance, and experience level. Learn before you trade—knowledge is your best asset.