#TradingTypes101 🚀 | Deep Dive into Negotiation Fundamentals 🚀
Spot, Margin or Futures? Understanding each mode is the first step to avoid falling into the traps of volatility:
• Spot: immediate buy/sell of crypto. Ideal for accumulating in the long term or doing DCA. No interest, but you only profit if the price actually goes up.
• Margin: uses leverage (e.g., 2×-5×) “borrowed” from the broker. Amplified gains (and losses). Pay attention to interest and automatic liquidations.
• Futures: contracts that allow you to profit (or hedge) by betting on the price direction, even when it’s falling. Higher leverage (up to 20×+), same risk.
When do I use each one?
• Spot for 70% of my portfolio — focus on hodl of BTC/ETH.
• Futures for 20% — hedge and quick trades in macro events.
• Margin for 10% — only in crystal clear setups and leverage ≤ 3×.
Tips for beginners:
1. Start with Spot and learn to use limit orders.
2. Never leverage without a stop-loss plan and defined position size.
3. Risk a maximum of 1-2% of capital per trade.
4. Keep a journal: results + emotions → conscious evolution.
5. Always study (Binance Academy, on-chain reports) and be skeptical of the hype.
Save this post and tag that friend who thinks “leverage is easy money”! 🔔