đš Main Types of Crypto Trading â Simplified Guide
đ˘ 1. Spot Trading
Youâre trading real crypto coins directly.
Example: Buy $AVAX at $30 â Sell at $35 â Earn $5 profit.
You actually own the coin in your wallet.
â Best for beginners â simple and transparent.
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đľ 2. Futures Trading (Derivatives)
You donât buy real coins â you trade based on price movement.
đ Long = expect price to rise
đ Short = expect price to fall
You can use leverage (10x, 20x, etc.), meaning higher profits but also higher risk â ď¸
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đŁ 3. Margin Trading
You borrow money from the exchange to trade bigger positions.
Example: $100 with 5x leverage = $500 trade size.
â ď¸ If the market moves against you, you could lose it all (liquidation).
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đĄ 4. Scalping
Ultra short-term trading â positions last seconds or minutes.
The goal is to make many small profits daily.
⥠Requires speed, focus, and technical precision.
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đ 5. Day Trading
All trades start and end within the same day.
No overnight positions.
Uses indicators like EMA, RSI, and MACD to spot entry and exit points.
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đ´ 6. Swing Trading
Trades last from a few days to a few weeks.
Focuses on catching medium-term trends.
đ§ Less stressful than day trading but still needs chart analysis.
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⍠7. Position Trading (Long-Term)
You hold crypto for months or even years.
Example: Buy Bitcoin or Ethereum and hold for 2â3 years.
đ Ideal for long-term investors who prefer low stress.
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đ¤ 8. Copy / Signal Trading
You automatically copy trades from experienced traders.
Example: following pros like â@Hugo_Jamesfxâ.
đ Great for beginners â just make sure you trust the trader you follow.
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