#TradingTypes101
Here are some common types of trading in cryptocurrency:
- *Spot Trading*: Buying and selling cryptocurrencies for immediate delivery.
- *Margin Trading*: Trading with borrowed funds to amplify potential gains, but also increases risk.
- *Swing Trading*: Holding positions for a short to medium term, typically days or weeks, to capitalize on price swings.
- *Day Trading*: Buying and selling within a single day, closing positions before the market closes.
- *Arbitrage*: Exploiting price differences between exchanges by buying low on one and selling high on another.
- *Long-term Investing*: Holding positions for an extended period, often months or years, with the expectation of long-term growth.
Some traders also use:
- *Technical Analysis (TA)*: Analyzing charts and patterns to predict future price movements.
- *Fundamental Analysis (FA)*: Evaluating underlying factors like demand, supply, and technology to determine potential value.
- *Going Long*: Betting on a cryptocurrency's price increase.
- *Going Short*: Betting on a cryptocurrency's price decrease.