#TradingTypes101
When stepping into crypto, knowing your trading types is essential. Here's a quick breakdown:
🔹 Spot Trading – You're buying/selling crypto at current market prices. Simple and great for beginners. You own the asset outright.
🔹 Margin Trading – Trade with borrowed funds to amplify gains (and risks!). It offers higher rewards but requires careful risk management and quick decision-making.
🔹 Futures Trading – You're speculating on price movement without owning the actual asset. It allows long or short positions with leverage and is best suited for experienced traders.
💼 My go-to?
I use Spot for portfolio building and long-term holds. I don't use future and margin trading because these can exploit your portfolio. You can loose all your money at once. It's too risky.
🔰 Tips for Beginners:
Start with Spot trading.
Never trade more than you can afford to lose.
Learn technical before diving into leverage.
Always use stop-losses in Futures/Margin.
Choose your type based on your goals, not the hype.
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