ARE SPOT AND FUTURES THE SAME?

I WANT to make my first trades and I don't know where to start 😨😨

If you have little time in the crypto world and trading and you don't master the terms, I will explain them to you easily and quickly.

Spot: IS the platform where the user can basically buy and sell their cryptos immediately at the market price.

It's similar to a daily transaction (like going to the market for fruits 🍍🥭 IN THIS case Cryptos, you pay with your money$ , receive the fruits and store them in your bag, the cryptos are stored in your wallet.

✅Advantages: It's the easiest way to trade for beginners; you basically buy low (when the price drops) and sell high (when it rises), here the risk is limited to the capital you invest.

Disadvantages: Profits depend a lot on the capital, so there is less potential for profit, you only make money when the market is bullish.

FUTURES: It is the platform where the user trades a cryptocurrency futures contract, where they speculate on the future price of the asset without owning it. This allows the trader to open long positions (speculating that it will rise) or short positions (speculating that it will fall).

✅ ADVANTAGES: You can profit in both directions of the market, you can use leverage that allows you greater exposure and higher profits.

❌ DISADVANTAGES: More risk, poor leverage can make you lose your trade very quickly, requires more study, good analysis, good risk management, and good emotional control.

Which is better? You can use your preference; if you are a beginner, it is better to start with spot; if you already master it, you can seek more profit in futures.

And what about you, which is your favorite? What did you think of the explanation? 👀

For Spot my Recommendation: #bnb #btc #eth

Which one do you operate with?

#usdt #binance