#SpotVSFuturesStrategy
Allow me to share some of my experience about this subject , there is 2 types of trading strategy you can choose in binance
1.Spot trading strategy
- Spot trading strategy is a long term game .
- The benefits is you own the product hold it in your cex wallet , you can stake it and get yield benefits.
- After sometimes when the price is up you can sell half of it and hold the rest so when the price reach the new ath you can take profit.
2. Futures trading
- Futures trading actually are design for hedging and protecting your wealth from spot market. But many people don't understand it.
- Yes it can help you gain lots of profit with a small investment but actually its a gambling.
- My suggestions strategy for trading in futures market is focus on risk management . always put a stop loss and risk reward to make sure you not loss all your investment . why? it's simple because you are gambling in the super volatile market.
- But the best way to use this futures is to buy the crypto from the spot market, and if you afraid that your crypto in your wallet will lose value than you can put enough amount of money in futures market and short it the crypto that you own with ratio 1:1.
i.e if you buy 1 $BTC you short with less money and short 1 $BTC .
This way you can protect your investment and when the price up you will get profit from spot market and lose small amount of money from futures its just like insurance so when the price fall you can keep the value of your investment .
- Always check the funding interest , this is important sometimes when the coin is on hype the interest can consume your investment , so becareful .
thats all, i hope this can help you to survive in this crypto market.