1. Spot Trading
Spot Trading is the buying and selling of cryptocurrencies directly with each other (e.g., BTC/USDT, ETH/BTC...) without using leverage.
Advantage: Suitable for beginners, simple, low transaction fees.
Disadvantage: Profit depends entirely on the price fluctuations of the asset.
2. Futures Trading
This is a form of trading based on the future price of an asset without needing to own that asset. Binance supports high leverage (up to 125x with BTCUSDT Perpetual). Futures have two types: Perpetual Futures and Delivery Futures.
Advantage: High profits when using leverage, can profit from both upward and downward trends.
Disadvantage: High risk, easy to have accounts liquidated if capital is not managed well.
3. Margin Trading
This form of trading allows borrowing money to trade with more capital than one's own funds. There are two main types: Isolated Margin and Cross Margin.
Advantage: Increases profit potential, especially suitable for traders looking to take advantage of short-term market opportunities.
Disadvantage: Risk of losing all capital when the market moves against you.
4. P2P Trading (Peer-to-Peer)
This form allows users to buy and sell cryptocurrencies directly with each other. Binance only acts as an intermediary to ensure safe transactions.
Advantage: Low transaction fees, many payment methods.
Disadvantage: Transaction processing time depends on the trading partner.
5. Options Trading
Options trading allows buying or selling an asset at a fixed price in the future or receiving the difference if not executed. Users can buy Call Options (buying options) or Put Options (selling options). Advantage: High profit potential, risk limited to the fees paid. Disadvantage: Requires good technical analysis knowledge, option fees can be high.
6. Discount Trading (Convert & OTC)
Convert is a quick switch between coins without using the order book. OTC (Over-The-Counter) is a form of large trading (whales) that does not affect market price.
Advantage: Fast, not affected by the liquidity of the order book.
Disadvantage: Not suitable for those who want to trade small amounts.
7. Other tools
Staking: Locking cryptocurrency to receive rewards.
Launchpad & Launchpool: Investing in new projects.
Copy Trading: Copying trades of professional traders.
Grid Trading: Automating trades by placing buy/sell orders at fixed price levels.