【#Introduction to Trading Types】Which type should beginners choose: Spot, Margin, or Futures?
When I first encountered cryptocurrency, I was also confused: What are Spot, Margin, and Futures? What are the differences? Which one is more suitable for beginners?
After more than a year of trading experience, I have summarized the following insights to share with you who are just starting out👇
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💡 Brief explanation of the three types of trading:
1️⃣ Spot Trading (Spot)
👉 Suitable for beginners: Buy as much as you want, risks are controllable
👉 The disadvantage is that it requires a large capital and yields are slower
2️⃣ Margin Trading (Margin)
👉 Suitable for intermediates: Small investments can yield large returns with 2~10 times leverage
👉 Risks are also magnified, strict risk control is necessary (I got liquidated on my first margin trade...)
3️⃣ Futures Trading (Futures)
👉 Suitable for strategic individuals: Can go long or short, profit from both market directions
👉 However, volatility is severe, and beginners can easily lose everything overnight, so it is recommended to practice with a simulated account first!
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🔰 My own trading habits:
I usually focus on long-term holding of Spot + small Futures for day trading, and I only try small amounts of Margin during particularly stable market conditions, never betting it all.
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🎯 Advice for beginners:
✔ Start with Spot to develop a feel for price fluctuations
✔ Remember to set take profit and stop loss, as risk outweighs market conditions
✔ Never be greedy for quick gains, always manage your capital!
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📌 Leave a comment to let me know: Which trading method do you use most often? Was your first liquidation in Margin or Futures?
