#TradingTypes101

Spot trading of cryptocurrencies is the buying or selling of an asset on the spot market at the current market price with immediate delivery.

Margin trading of cryptocurrency is the use of borrowed funds to pay for a transaction. The key difference between margin trading and spot trading is that margin trading uses leverage.

Spot trading is simpler, but margin trading can, under certain circumstances, increase profits. However, leverage is a double-edged sword, as it can also amplify losses.