Do you know the differences between spot trading, margin trading, and futures trading?
Understanding these three types of operations is key to making smart decisions in the world of investments. Here I explain clearly:
💱 1. Spot trading
You buy or sell an asset at the current market price. It is the most direct and simple form.
📌 Example: You buy 1 BTC for $65,000 today. You hold it in your wallet hoping it will increase.
✅ Ideal if you are just starting, want to hold long-term, and avoid complex risks.
💰 2. Margin trading
You invest with borrowed money from the broker, which increases both your potential gains and your losses.
📌 Example: You have $1,000, but you use 5x leverage to trade as if you had $5,000. If the price rises by 10%, you gain $500. But if it falls by 10%, you could lose all your capital.
⚠️ I do not recommend this for beginners. The risk grows quickly here.
📉 3. Futures trading
You agree to buy or sell an asset in the future at a price agreed upon today. You do not need to have the actual asset.
📌 Example: You agree to sell ETH at $3,500 in 30 days. If the price drops to $3,000, you gain the difference. But if it rises, you lose.
🎯 Commonly used for speculation or hedging risk. Experience and good emotional management are needed.
🎓 Which do I use more and why?
I started with spot trading, due to its simplicity and lower risk. Today, I use futures at specific moments to hedge or take advantage of clear trends.
💡 Tips for beginners:
✅ Start with spot trading.
✅ Never invest more than you can afford to lose.
✅ Learn risk management before using leverage.
✅ Practice on demo accounts if you want to try futures or margin.
Always remember to research any project.
Confirm with a like if you found the information useful. $BTC $BNB $ETH
