#TradingTypes101 📊 Trading Types 101: Explained for Beginners
Whether you're a newbie or brushing up your skills, understanding the types of trading is key to mastering the markets. Here’s a quick guide:
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🟢 1. Spot Trading
Buy or sell assets instantly at current market prices.
You own the asset (like BTC or ETH) once you buy it.
🔹 Example: Buy 1 BTC at $65,000 — it’s yours now.
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🟡 2. Margin Trading
Trade with borrowed funds to increase potential profit.
Can lead to higher gains or losses.
Uses leverage (like 5x, 10x).
⚠️ High risk! Know what you're doing.
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🔴 3. Futures Trading
Bet on future price — go long (buy) or short (sell).
No ownership of the actual asset.
Often used by pros to hedge or speculate.
❄️ Can profit even in a bear market!
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🟣 4. Copy Trading / Social Trading
Copy the trades of experienced investors.
Ideal for beginners to learn while earning.
Platforms let you follow top traders automatically.
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🔵 5. P2P (Peer-to-Peer) Trading
Direct trade with other users.
Often used for buying/selling crypto with local currency (like INR).
More control, but always verify and stay safe.