#Liquidity101

In the world of crypto, understanding the types of trading is very important to optimize investment strategies. There are three common types of trading: spot trading, futures trading, and margin trading. Spot trading is the simplest – you buy and hold the asset. Futures allow you to profit whether the market goes up or down, but they also carry higher risks. Margin trading enables you to borrow money to trade, increasing potential profits but also posing significant risks. Choosing the right type of trading depends on your risk appetite and experience.