Kicking off our deep #deep dive into trading fundamentals, let’s break down the core trading types #TradingType101 every #crypto enthusiast should know: #Spot Margin #Margin , and Futures.
Each type caters to different strategies and risk levels. Knowing how they work is essential to crafting your own trading approach.
🔹 Spot Trading
You’re buying or selling crypto at the current market price—simple and straightforward. Best for beginners and long-term holders who prefer lower risk.
🔹 Margin Trading
This lets you borrow funds to increase your position size. It can amplify gains, but losses too—so it’s better suited for traders with some experience and a strong risk management plan.
🔹 Futures Trading
You're trading contracts that speculate on a crypto asset’s future price. It offers high leverage and advanced strategies, making it more appropriate for seasoned traders who understand market dynamics well.
📈 When to Use Each?
Spot: For long-term investment or low-risk trading
Margin: When you want to trade with leverage on shorter timeframes
Futures: For strategic hedging or speculation in both rising and falling markets
💡 Beginner Tips
Start with Spot trading to learn the ropes
Never risk more than you can afford to lose
Understand leverage before trying Margin or Futures
Keep emotions in check and always use stop-losses
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