#TradingTypes101
When entering the world of cryptocurrencies, you will encounter several types of trading, and you must understand the differences between them to determine the strategy that suits you best:
1. Spot Trading:
This is the simplest and most commonly used type, where you buy or sell the currency at the current market price. For example: Buying BTC/USDT at a specified price.
2. Margin Trading:
This method allows you to borrow funds to increase the value of your trade. However, it is risky, as losses can be greater if the market turns against you.
3. Automated Trading:
This is done through robots that open and close trades based on pre-defined conditions, helping to reduce human stress.
4. Futures Trading:
It relies on contracts where an agreement is made to buy or sell a specific asset at a future price and date. It requires a precise understanding of risk management.
Each type has its features and risks, and your choice depends on your experience and investment goals.
ð Share with us: What type of trading do you use the most? And why?
