#TradingTypes101

Understanding Spot, Margin & Futures Trading

Key Differences:

• Spot Trading: Buy/sell crypto instantly with funds you own. Safest option for beginners with no leverage risks.

• Margin Trading: Borrow funds to amplify positions. Higher profits possible, but also higher risks due to liquidation potential.

• Futures Trading: Trade contracts without owning actual crypto. Allows both long/short positions with leverage up to 125x.

When I Use Each:

• Spot for long-term holds and DCA strategies

• Margin for swing trading during clear trends

• Futures for hedging and short-term speculation

Beginner Tips:

1. Start with spot trading to learn market dynamics

2. Never risk more than you can afford to lose

3. Practice risk management before using leverage

4. Study technical analysis fundamentals

Choose based on your experience level and risk tolerance! 📈