Before diving into crypto trading, it’s essential to understand the four major types of trading you’ll encounter:
1. Spot Trading: The simplest and most popular. You buy or sell crypto instantly at the current price. No leverage, no borrowing. Best for beginners and long-term holders.
2. Futures Trading: You predict whether a coin will go up or down in the future. With leverage, you can trade more than you hold, but it increases risk. This is for experienced traders only.
3. Margin Trading: You borrow funds to increase your trade size. While profits can grow faster, losses can too. Always use strict risk management.
4. P2P Trading: Peer-to-peer allows you to buy/sell crypto directly with others, often using local payment methods. Ideal for those wanting to convert crypto to cash safely.
Each type has its own risks, strategies, and purpose. Start with spot trading and build confidence before stepping into leveraged zones like margin or futures.
Learn the type, master the tool. Smart traders are informed traders. 💡
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