What is #SpotTrading? ๐
๐น You buy and *own the actual crypto* โ you hold the coins/tokens in your wallet directly.
๐น Perfect for *long-term holders* who believe in the project and want to HODL.
๐น *Less risky* because youโre not borrowing money or using leverage โ you canโt lose more than what you invest.
๐น Requires *higher capital upfront* since you pay full price for the crypto without borrowing.
๐น In some countries, like India, spot trading profits may be subject to *30% VDA tax* on gains.
Deep dive:
Spot trading is like buying an asset outright โ you become the true owner, with full control and access. Itโs straightforward, simple, and ideal if you want to avoid complex risks that come with futures or margin trading. Since thereโs no leverage, the potential for huge short-term profits is limited, but neither is the risk of margin calls or liquidations.
Great for building a solid crypto portfolio and weathering volatility without panic. Just buy, hold, and trust the long-term vision! ๐๐