#TradingTypes101

Two main types of trading on the cryptocurrency exchange

1. Spot Trading

- Buying and selling cryptocurrency at the current market price with instant settlement.

- Traders own real assets and can withdraw them to wallets.

- Suitable for long-term investments (HODL) and medium-term strategies.

- Low risks compared to margin trading (no leverage).

2. Margin and Futures Trading

- Margin trading involves borrowed funds (leverage), which increases potential profit but also risks.

- Futures are contracts for future delivery of an asset at a fixed price, often with high leverage (up to 100x).

- Allows earning on both market growth (long) and decline (short).

- High risk of liquidation of the position in case of unfavorable price movement.

The choice of strategy depends on experience: beginners are better off starting with spot trading, while experienced traders may use futures and margin trading to increase profits.