#TradingTypes101
Whether you're a beginner or refining your strategy, knowing the three main types of trading—Spot, Margin, and Futures—is crucial to your crypto journey. Here's a quick breakdown:
📌 1. Spot Trading
What it is: Buying or selling crypto at the current market price.
Best for: Beginners and long-term holders.
Pros: Simple, no leverage, you own the actual asset.
Risk: Lower.
📌 2. Margin Trading
What it is: Borrowing funds to trade larger positions.
Best for: Intermediate traders looking to amplify gains.
Pros: Potential for higher profits.
Risk: You can lose more than you invest. Use with caution.
📌 3. Futures Trading
What it is: Speculating on price movements without owning the asset, often using leverage.
Best for: Experienced traders and short-term strategies like scalping.
Pros: Profit from both rising and falling markets.
Risk: High volatility and liquidation risk.
🧠 Which one is for you?
Choose based on your risk appetite, experience, and goals. Personally, I use spot trading for long-term investments and futures for short-term scalping, especially when the market is trending.
Let’s share and learn!
👉 What’s your preferred trading type and why?