⚡ Spot vs Futures vs Margin explained in 60 seconds
When we enter Binance we see several options: Spot, Futures, and Margin. They sound similar, but they are not 👇
📍 Spot (cash)
• You buy the crypto directly.
• Example: I buy 1 $SOL and it becomes mine. If it goes up, I win; if it goes down, I lose.
• It is the simplest and safest way to invest.
📍 Futures
• You do not buy the crypto, you speculate on its price.
• You can win even if it goes down (short selling).
• You use leverage (x2, x5, x10…), but be careful: losses are also multiplied.
• It is riskier and requires experience.
📍 Margin
• You borrow money from Binance to trade with more capital.
• If you win, you amplify your profit; if you lose, you also amplify your loss.
• It’s like playing with borrowed money: be cautious of the risk.
✅ In summary:
• Spot = real investment, ideal for beginners.
• Futures = speculation, quick profits but high risk.
• Margin = trading with borrowed money, dangerous if you don’t know how to handle it.
💡 Personal advice: always start with Spot until you fully understand the market. Futures and Margin are not for beginners.
