Spot Trading: Pros and Cons

Pros:

1. Simplicity — you buy an asset immediately at the current price, without complex conditions.

2. Instant transactions — assets transfer to you immediately after payment (for example, crypto on an exchange).

3. Transparency — the price is fixed, with no hidden conditions like in futures.

4. No liquidation risk — unlike margin trading, you won't lose everything due to a stop-out.

5. Long-term investments — you buy and hold until the price increases.

Cons:

1. Lower profit — without leverage, earnings are modest.

2. Requires more capital — to earn seriously, substantial investments are needed.

3. No protection from drawdowns — if the price drops, you'll have to wait or realize a loss.

4. Limited opportunities — you can't profit from a market decline without selling the asset (shorting is more difficult).

5. Fees — frequent transactions eat into profits due to exchange fees.

Conclusion:

Spot trading is good for beginners and long-term investors, but for quick earnings or betting on declines, margin or futures trading is better. The main thing is to clearly understand the risks.#Spot