Type of trading that you should know
1. Spot Trading
Buy and sell actual cryptocurrencies (like BTC, ETH) at current prices.
Most common and simplest form of crypto trading.
No leverage, lower risk compared to derivatives.
2. Margin Trading
Borrow funds to trade larger positions.
High reward, but high risk due to leverage.
Common on platforms like Binance, Bybit, and KuCoin.
3. Futures Trading
Trade contracts that speculate on future price movements.
Can go long or short.
Offers leverage (2x, 5x, 10x, even up to 100x).
Requires strong risk management.
4. Scalping
Extremely short-term trades, capitalizing on small price movements.
Often used with leverage.
High-frequency and needs precision.
5. Day Trading
Enter and exit positions within the same day.
Relies heavily on technical analysis and price action.
Popular in volatile markets like crypto.
6. Swing Trading
Hold positions for days or weeks, riding trends.
Lower stress than day trading.
Combines technical and some fundamental analysis.
7. HODLing (Long-Term Investing)
Buy and hold crypto for months/years.
Based on belief in long-term adoption and value.
Less technical, more conviction-based.
8. Arbitrage
Profit from price differences across exchanges (e.g., BTC price is slightly higher on Binance than Coinbase).
Needs fast execution and capital.
9. Copy Trading / Social Trading
Follow and copy trades of experienced traders.
Offered by platforms like eToro, Bitget, or Binance.
Good for beginners, but still risky.
10. Automated Trading (Bots)
Use trading bots to execute strategies automatically.
Requires programming knowledge or use of platforms like 3Commas, Pionex, etc.
If youโre just starting, spot or swing trading is usually best.
