#TradingTypes101

Spot Trading

Spot trading is the most basic and direct way to buy and sell cryptocurrencies. When you trade on the spot, you are buying or selling the actual asset (for example, Bitcoin, Ethereum) and receiving possession of it in your wallet. It's similar to buying any other commodity in a market.

Ideal for beginners: It is the recommended starting point for those new to cryptocurrency trading. It has the least risk and is what I use.

Margin Trading

Margin trading allows you to trade with an amount of capital greater than what you actually own, using borrowed funds from the exchange platform or other traders. This "leverage" amplifies both potential gains and losses.

Futures Trading

Futures are derivative contracts that require the parties to execute a transaction of an asset at a predetermined price on a specific future date. In cryptocurrency trading, you are not buying or selling the cryptocurrency itself, but rather a contract that represents its value.