#TradingTypes101
📊 *Spot vs Margin vs Futures — What’s the Difference?*
Understanding the types of trading is crucial to building a solid strategy. Here’s a quick breakdown 👇
🔹 *Spot Trading*
You buy and own the actual crypto. No leverage.
✅ Simple and low-risk
✅ Great for long-term holding or beginners
> 💡 Use when you want to accumulate assets over time with minimal risk.
🔹 *Margin Trading*
Trade with borrowed funds. Increases both potential gains and losses.
✅ Suitable for short to mid-term moves
✅ Requires solid risk management
> 💡 Use when you're confident in your analysis and want to increase your position size, but beware of liquidations.
🔹 *Futures Trading*
You're trading contracts that speculate on price movements — without owning the actual asset.
✅ Allows going long or short
✅ High leverage, high risk
> 💡 Use when you want to profit from both up and down markets or hedge your spot holdings — but only if you understand the mechanics well.
🔁 *When do I use each?*
Personally, I use Spot trading the most — it’s safer, especially for building a long-term portfolio.
I use Margin or Futures occasionally for short-term opportunities, but only with a strict stop-loss plan.
🛡️ *Tips for Beginners:*
1. Start with Spot trading. Learn how the market moves without the stress of leverage.
2. Never risk more than you can afford to lose.
3. Educate yourself before jumping into Margin or Futures — they can wipe out your capital fast.
4. Use testnets or paper trading to practice strategies.
5. Set stop-losses and stick to your plan.