#TradingTypes101 There is a saying that every mind is a world. And in the world of investments, this applies exactly.
Not only in conventional investments, but also in crypto investments, there are several ways in which you can earn money, which depends more on each person's personality type and the risks they are willing to take.
1) Spot or cash: you buy an asset and hold it for an indefinite period, either in an exchange or in some cold wallet. What could you do with this asset?
- you could stake it, generating compound interest, which over time would mean that your asset would have a greater value, as the quantity and market value increase.
This depends on your investment plan and the time you are willing to wait for your asset to appreciate.
2) Futures Trading: It offers you an opportunity to generate high profits in a very short time; however, you must take into account that there are aspects you must master before starting in the world of futures trading.
Such as:
risk
mindset
Futures Trading is a very good option to earn both in a rising market and in a falling market; however, thinking that you can make a lot of money in a very short time is a trap. You must prepare yourself, acquire knowledge, and strategies, as in a highly volatile world like crypto, it can rise a lot but also fall a lot, and you must be willing to accept and manage your losses.
There are 3 types of Futures Trading:
- Scalping, which lasts from minutes to hours
- Day trading, which lasts several days
- Swing trading, which lasts weeks or months.
Each has its own strategy, risk, and benefit.
These are the two most common ways you can generate money, each is profitable with the right strategy. However, none is infallible; you must conduct an analysis when buying any cryptocurrency to avoid losing your money over time.