#TradingTypes101

Two main types of trading on the cryptocurrency exchange

1. Spot trading

- Buying and selling cryptocurrency at the current market price with immediate settlement.

- Traders own real assets and can withdraw them to wallets.

- Suitable for long-term investments (HODL) and medium-term strategies.

- Low risks compared to margin trading (no leverage).

2. Margin and futures trading

- Margin trading – trading with borrowed funds (leverage), which increases potential profits but also risks.

- Futures – contracts for future delivery of an asset at a fixed price, often with high leverage (up to 100x).

- Allows for profit both in rising (long) and falling markets (short).

- High risk of liquidation of position in case of unfavorable price movements.

Choice of strategy depends on experience: beginners should start with spot trading, while experienced traders can use futures and margin trading to increase profits.