Understanding the difference between Spot trading, Margin trading, and Futures trading is a fundamental step in building a smart strategy in the crypto world. 🔍
Spot trading is the simplest – you buy and sell actual assets like #ETHUSDT, and you truly own what you purchase. It is the ideal option for beginners and long-term investors.
Margin trading allows you to borrow funds to increase the size of your position. It can amplify profits, but it also increases losses. I use it for short-term opportunities when I am confident in the direction, with strict risk management.
Futures trading is more advanced – you trade contracts based on price movement, often using leverage. It’s excellent for hedging or short selling, but it requires significant experience and discipline.