#TradingTypes101
📊 Spot vs Margin vs Futures: Know the Difference
Before trading crypto, it’s key to understand the 3 main types:
🔹 Spot Trading: Buy/sell crypto instantly at market price. You own the asset—great for HODLing and simple strategies.
🔸 Margin Trading: Borrow funds to trade larger positions. Higher reward, but also higher risk. Risk management is essential.
🔻 Futures Trading: Trade contracts that speculate on price—without owning the asset. Great for hedging and leverage, but suited for experienced traders.
✅ Beginner Tip: Start with Spot. Always use stop-losses in Margin or Futures, and never risk more than you can afford to lose.
I mostly trade Spot for long-term holds, and use Futures for short-term plays.
What’s your go-to trading type?
#CryptoTrading #BinanceSquare #SpotMarginFutures #TradingTips