In the crypto world, many people's first step is spot trading, but when it comes to truly understanding and mastering spot trading, there are actually not many. Compared to the high volatility and strong leverage of futures, spot trading is more like a marathon; it tests your cognition, patience, and timing ability, rather than a moment of passion and impulse.
So-called spot trading means 'buying cryptocurrency for real.' Once purchased, you truly own the asset, whether you hold it long-term or wait for the price to rise before selling. The trading process is simple and clear, with more controllable risks. Without leverage, there is no liquidation; the biggest risk comes from the market's own fluctuations, not forced liquidation by the system.
Many people look down on spot trading, thinking it's slow and yields low returns, but the seasoned players who have successfully navigated bull and bear markets have mostly accumulated their first pot of gold through spot trading. Choosing the right coins, holding core assets, and enduring the cycles, you'll find that spot trading is actually one of the most reliable strategies.
Of course, spot trading is not 'mindless holding.' In this rapidly changing market, selecting coins, portfolio allocation, and timing of entry are all key determinants of profit and loss. For example, chasing prices at the end of a bull market or going all-in at the beginning of a bear market can lead to significant drawdowns; however, if you can lay out your positions at low levels, wait patiently, and gradually take profits, the final outcome is often favorable.
For newcomers, I would recommend starting with spot trading, learning to observe trends, recognize projects, and manage positions in an environment without leverage. Instead of jumping straight into the futures market and treating your principal as 'trial and error costs' to pay tuition.
The market is always changing, but the understanding of risk and trading is the underlying logic that remains unchanged in investment. Spot trading is the best starting point.
Keep up the pace, and you can recover losses and flip your position overnight!
