#TradingTypes101 Perfect! The hashtag #TradingTypes101 is usually used on social media to educate beginners about the different types of trading in the financial market, especially in cryptocurrencies like Binance.
Here is a simple and straightforward guide on the main types of trading, for you to understand how they work and which one fits your style and goal best.
---
🔰 #TradingTypes101 – Types of Trading Explained
1. 🟢 Spot Trading (Spot Trading)
> You buy and sell the asset immediately, with the money you have.
Example: Buy 10 USDT in Bitcoin and wait for it to appreciate.
Ideal for: Beginners, long-term investors.
Risk: Low to moderate.
Platform: Binance → Trade → Spot
---
2. 🟡 Margin Trading (With Leverage)
> You borrow money from the broker to operate with larger amounts.
Example: With $10, you trade as if you had $50 (5x).
Profits and losses are multiplied.
Ideal for: Experienced traders.
Risk: High (possible total account liquidation if the move is incorrect).
---
3. 🔴 Futures Trading (Futures Contracts)
> You bet on the rise (long) or fall (short) of a crypto with leverage.
Example: Bet that BTC will rise using 10x leverage.
Allows for large profits even with little money.
Ideal for: Traders with strategy and emotional control.
Risk: Very high (wrong moves = quick liquidation).
---
4. 🟣 Scalping
> Several quick trades during the day for small profits.
Example: Buy BTC, wait for it to rise 0.5%, sell. Repeat.
