$BTC #TradingTypes101 To build a well-informed trading strategy, you must first understand the tools you're using. Here's how I break down the three core types of trading on Binance š
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š¹ Spot Trading
Buy or sell crypto at real-time prices ā simple, direct, and you own the asset.
āļø Best for:
Long-term Holding š
Beginners and low-risk strategies
Dollar-cost averaging
š My Take: āSpot is where I build positions for the long haul.
$ETH ,$SOL OL ā the ones I want to hold, not flip.ā
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šø Margin Trading
Trade with borrowed funds ā bigger positions, bigger potential, but also bigger risks.
āļø Best for:
Confident short-term trades
Medium-risk tolerance
Volatile market plays
ā ļø Remember: Use stop-loss. Leverage is powerful... and unforgiving.
š§ Insight: āMargin helps me amplify when Iām 80% sure ā not 50/50 guessing.ā
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š» Futures Trading
Speculate on price movements without owning the underlying asset.
āļø Best for:
Shorting in bear markets š»
Hedging long-term holdings
Advanced traders with discipline
ā” Leverage up to 100x = high risk/high reward
š£ Not for the faint of heart ā risk management is everything.
š My Strategy: āI use futures when I see a breakout or need to hedge a spot position. Precision is key.ā