Key Types of Crypto Trading Operations

1. Spot Trading

Buy/sell crypto for immediate settlement.

You own the actual coins after the trade.

Example: Buying 1 BTC on Binance and holding it in your wallet.

2. Margin Trading

Trading with borrowed funds to amplify potential gains (and risks).

Requires collateral and involves paying interest.

Example: Borrowing funds to buy more ETH than you can afford outright.

3. Futures and Derivatives Trading

Contracts to buy/sell crypto at a future date for a set price.

You can speculate on price movements without owning the coins directly.

Can be used to hedge risk or for leverage trading.

4. Decentralized Exchange (DEX) Trading

Trading on blockchain-based platforms without intermediaries.

Trades happen peer-to-peer via smart contracts.

Examples: Uniswap, PancakeSwap.

5. Automated Trading / Bots

Use algorithms or bots to execute trades automatically based on pre-set criteria.

Can run 24/7 and react faster than manual trading.