SPOT (Crypto purchase) vs FUTURES (trend bet)
Pros and cons of both
SPOT
Advantages
1. If you buy at a good price at a very low point and it doubles its price continuously and without losing its highest peaks, your money grows and you see results
2. The price drops for a while and you don't lose if you are patient and wait for the rise, as it is a purchase of participation, you only lose if you sell below the acquired price, many get scared and stop receiving profits when it rises.
3. The spot allows you to analyze the selected market and shows you its behavior, this could help you a lot to make futures.
Disadvantages
1. If it is a currency that follows cycles and the same parameters without going up a level, it is a waste of time and very slow growth.
2. If it loses value and if it does not have volatility, you have to wait too long to recover with a rise.
3. When entering with little capital, even if it goes up too much, the profits are very poor.
FUTURES
Advantages
1. Leverage generates quick profits and adds value to your portfolio if it confirms the LONG (upward) or SHORT (downward) direction.
2. It generates a study of the selected coin, which allows for greater knowledge of trends, which leads to greater profitability.
3. With good risk management and adequate leverage, the currency can fluctuate and not influence the proposed direction, even if we have an operation open for days or weeks.
Disadvantages
1. If you tend to go in the opposite direction, you lose twice as much as you generate with the rise. If you check the fluctuation, you will realize this fact.
2. If you include a cross margin and it does not have a stop loss placed, it will continue its opposite course until it consumes the entire balance, even from other accounts to cover the loss margin.
3. It does not generate adequate loss behavior, unlike the spot that seeks patience while waiting for the rise. If you consume your balance in FUTURES, there will be no return. Many even try more operations by guessing and not studying, which again generates more orders.
