#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 – trading with borrowed funds (leverage), which increases potential profits but also risks.

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

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

- High risk of liquidation of 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 can use futures and margin trading to increase profits.