#TradingTypes101 The world of crypto and financial trading is multifaceted. To successfully navigate it, it's important to understand the key differences between the main types of trading: spot, margin, and futures. Each has its own characteristics, advantages, and risks. Let's break them down and determine when to use each.

🔹 1. Spot Trading

What it is:

You buy or sell an asset (such as Bitcoin or stocks) at the current market price and become its direct owner.

Key features:

The transaction occurs instantly.

No leverage (you trade only with your own funds).

You gain ownership of the asset.

When to use:

When you want to own the asset (for example, holding BTC in a wallet).

If you are a beginner and want to minimize risks.

For long-term investing.

Pros: simplicity, minimal risks.

Cons: limited opportunities to earn from price fluctuations.

🔸 2. Margin Trading

What it is:

You borrow funds from an exchange or broker to increase your position. For example, with 2x leverage, you can trade with $1000 while having only $500.

Key features:

Allows the use of leverage.

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