Spot Trading vs Futures Trading
When trading on Binance, you have two options: spot trading and futures trading. Here's a brief comparison:
•Spot Trading:
- Buy and sell cryptocurrencies at current market price
- Advantages: simplicity, no risk of liquidation, no leverage
- Disadvantages: limited potential, no hedging
•Futures Trading:
- Buy and sell contracts speculating on future prices
- Advantages: leverage, hedging, flexibility
- Disadvantages: risk of liquidation, complexity, higher risk
•Choose:
- Spot trading for: beginners, long-term investors, low-risk traders
- Futures trading for: experienced traders, hedging, high-risk tolerance
Understand the differences and choose the best option for your trading goals and risk tolerance.
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