#TradingTypes101 🧠

When diving into crypto, understanding trading types is essential. There are mainly two: spot trading and derivatives trading. Spot trading is the most beginner-friendly—buying or selling actual crypto assets for immediate delivery. It’s simple: if I buy 1 BTC on the spot market, I actually own it. On the other hand, derivatives trading involves contracts—like futures—that derive value from crypto assets but don’t involve owning them. These are riskier but allow for shorting and leverage. Choosing the right type depends on your risk tolerance and strategy. Start simple with spot, and only explore derivatives once you’ve done your homework!