🚨🚨Lesson 1: Fundamentals of Trading (Part 2)🚨🚨
Spot vs. Futures – Types of Markets Explained
Before making your first trade, it's essential to understand where you are trading. There are two main types of markets in cryptocurrency trading:
1. Spot Market:
This is where you buy or sell cryptocurrency at the current market price, and you actually own the asset.
Example:
You buy 1 BNB for $500 → Now it’s yours, and you can hold it, transfer it, or sell it later.
✅ Best for beginners
✅ No liquidation risk
✅ You own real cryptocurrency
2. Futures Market:
In the futures market, you do not buy the asset itself. Instead, you trade a contract that bets whether the price will go up or down.
You can use leverage, which means borrowing funds to increase the size of your trade — but this adds risk.
Example:
You enter a futures contract anticipating that BTC will rise. If you are correct, you will earn more — but if you are wrong, you could lose your money more quickly.
⚠️ Higher risk
⚠️ Requires good risk management
⚠️ Possible liquidation (losing your position completely)
📌 Which to choose?
Start with Spot trading to safely understand the fundamentals.
Explore Futures only when you are experienced and disciplined.
In the next part, we will cover the types of orders: Market, Limit, and Stop-Limit — essential tools for every trader.
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