Bitcoin Forum

What is better and which one would you guys prefer. I have been doing spot trading but i haven't made much money, so i was kind of making up my mind to jump in future trading but a lot of my friends are asking me not to as they think that i can loose big. So what you experienced traders prefer?

What's the reason you're not making a profit with spot? If it's fees you COULD try futures trading - just don't put a lot down. If you're making trades that you close within a few hour or a few days then futures might be good for you - just check you're actually turning a profit before investing too much into it and mål sure you can mamange risk (if you're risking more than a few % on each position/trade, you might be risking too much).

Futures is a gamble.

That's why I've never stepped on it, I'll choose the usual gamble where I've got better chance than it. But there are traders that I've seen who really are good with it.

And for you, I'll suggest to stick with spot first.

If futures is a gamble, the spot trading is a gamble too. The only difference is one is more risky than the other

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OP look at it this way
1. Spot trading - Less risky but less rewarding too
2.  Futures trading - More risky and more rewarding if win right.

The question is are you willing to lose more money or even liquidate your account in case things don't work out in your favor? Because you must always look at the risk more than the reward.

Right.

Spot is lesser risky but futures, OP might not been aware of that he's already been liquidated and might be surprised to see that his balance has already been gone due to it.

He has to know about that because the difference between the two is huge.

In spot trading, if you buy and hold, you won't got bankrupt unless coin dies but that doesn't happen with normal projects like Ethereum, Ripple, Qtum, Matic, etc. If you invest in coins like Shib, then idk :D
Futures trading isn't much different from spot trading unless you start opening of short positions and or playing with leverage. Then it really turns into something thats 100x more dangerous than gambling (and in gambling you can get fun while the whole opposite happens in trading).

Futures trading with leverage is very risky! It's even more dangerous with altcoins that rise and fall without logical reasons.

High profits, - high risks.
This works on these.
In the future trading, you may be able to get big profits very soon, but on the opposite, you can also lose your money very soon.

If you really want to go into future trading, ensure that:
- You have a good heart condition, because future trading sometimes will make your heartbeat very hard and a higher worry, and sometimes it is often anxious.  :D
- You are ready with high risks, not only think about the big profits that you can gain
- You have understood what is future trading
- You have understood the features in the future trading
- You have good money and risk management, how much to set on the margin, how much leverage, and others.
- You have learned how to analyze the charts, based on what time frame and others
- It is also needed to learn about SL/CL, hedge mode, and others.
- ANd many more fundamental and technical strategies that should be done.
At least, they are what we need. And maybe some more others.
Without these, it may be more to gambling.
Learn from your own experience if you are ready so that you will also know what is best for you.
And I will not suggest you to trading in futures if you are still asking like this.

There's a lot of difference between spot trading in futures trading.
It's very advisable that if you are a newbie in trading, it's much better first to try spot trading, or you can try futures trading, but in very small leverage, we all know how volatile crypto is so using high leverage for every trade is high risk.

I'd prefer to do a spot trading and set up my trading strategy for me to at least, consistently win and become profitable at the end of my yearly timeline.

If you still losing money, better to stop trading for a while and continue to learn things, maybe something is wrong with you ideas about trading that you need to address first before you trade. Learning trading takes time, don't lose hope and just do everything to understand trading.

I don't think that future trading will fit you if you are still don't know about future trading itself and you still have doubts. Moreover, if I am new, I will prefer on-spot trading. Although it may not give big profits easily, I can still save my funds if once the market drops very fast. Our asset will be there in spot trading, we can still wait for the next pump market. But if in future trading, I am afraid that I will lose my funds at all if the market suddenly drops.
but if you nat to try, just learn from demo trading in several exchanges that provide demo trading future trading. So you can see your chance there.

Exploring the futures trading is very risky in my opinion especially if the OP is not ready to lose his funds.
Weigh your options. Even if you are not making much profit from spot trading, at least you are in the positive side.
However, in futures, it is more rewarding if you got it right, however, it can easily liquidate all your funds at once as well.
So if you are going into futures, maybe use money not loaned from anyone, use what you can comfortably lose.
There are pros and cons on both, but it is only you who can answer how prepared are you in going to futures market.

Definitely a gamble. I wanted to try it myself since I have tried Forex for almost a year back when I have yet not discovered BTC. Those who can predict which way the market goes can try Futures in the longer time frame. It might not be too difficult when there is a bull run.

The spot market is a lot safer because even when the price drops,  you can just hold your coins, nothing is lost.

Spot trading is much better then future. Low risk and best earning.  Personally, I prefer short-term spot trading. Buy when the price is low, sell when the price rises, buy after the price pulls back down, and then sell after it rises. I think this is more profitable. Just a personal opinion.

Isn't Futures a high-risk kind of thing? I'd rather go for spot trading tbh. Futures indeed gives you more profit but also has bigger risks involved, and honestly, if you were to do spot trading properly, the profits could potentially match what you would get in futures, and with lower risks at that. It's just a matter of experience for spot trading hence why you have pretty low profits, just keep trading. It would only be a matter of time imo before you get the hang of it and manage to take advantage of dumps and pumps of the market.

Depends on you futures is much riskier but you can earn much more than spot trading. They have both advantage and disadvantage. In spot trading you can have the coins for example you bough 1 Bitcoin and if the price crash you still have 1 Bitcoin but in futures if the market crash and you hit your liquify price you will lose your money and you won't have any asset unlike in spot trading.

Spot trading is a gamble too,,, at least if I see the way people do it. And I know yes, the argument that 1 btc is always 1 btc, but the same as forex or stock market (the currency or stock you hold is always the same amount) but the gambling part is, which side of the market you want to hold?

But I agree. Futures and derivatives are even more of a gambling element,,, really attracts bets. And essentially this is what this is, betting.

it depends on the commodity you are trading on if it is stock such as gold and other stable assets then you can choose future trading to minimize fees and predictable profits since you have a predetermined time and price for the trade, but if you are trading on a volatile asset such as bitcoin then spot trading is the most proffered because you can’t predict what the price will be with future trading.

Indeed, in trading there is an element of betting, but by understanding the spot, we can analyze and measure the risk and reward that we will live. so that we will not lose our capital in one transaction, because previously we have measured the risk limit that must be accepted when our analysis is wrong.

Trading future comes with more risk so you will lose the capital completely, if you are okay with that then start doing it.

Spot trading is the best kind of trading because it gives complete convenience so that you can apply your strategies well while doing it.

Spot trading is a much safer option as compared to Futures trading, as you might already know. None os superior to the other but it all depends on how many risks you are ready to take for how much profits.

Continue spot trading if you don't want to take any risks. If the price falls, you have the luxury of waiting for months and even years if required for the price to recover. This isn't possible in futures trading.

If you want to take risks and benefit from a sharp movement of the market, try futures trading. But I would advise starting with a small amount first.

The fact that you have not lost your money is already a good thing. But you obviously do not have enough knowledge and experience, and perhaps the size of the deposit to start earning. In this case, you need to focus on gaining new knowledge for trading cryptocurrency. And most importantly, until you learn how to trade on the spot market, you should not engage in margin trading.

It's real fear!  ;D
The outcome is pretty big than what you invest but obviously when it's trading, the more is the risk the more is money you get. I have tried this Futures option after watching Binance Tutorial videos itself but never understood the prediction strategy for the COIN-M futures. The thing is you need extensive knowledge regarding the coin and how it will react in few hours to couple of days. Putting the money longer than that on to futures is big risk. Even after series of tutorials' I have failed to do perfect trade on the futures.
I think this is not the option for and I may not even enrol into it ever. The spot trade is always good. It's simple, low risk enabled and anyone can understand it with long terms positions.

I find this discussion similar to Crypto Trading vs Stocks Market because one is a risky version of the other basically. I think futures trading is not that bad of an option but should only consider it during a bull run because small drop and you will lose chunks of money very quickly. Spot trading is more like a traditional manner of trading with low risk and low reward mentality.

If I was asked the same question though, I would have taken a big loan from a relative at low interest and do spot trading with that amount instead of risking futures trading. Futures trading is all about borrowing money and trading with it, in essence.

both are good for those who have skills in specified trading, both spot and long term. You only need to adjust to the capacity you control, and if the trade you are doing is not giving too much profit because the mastery of spot trading is still limited and only relies on the situation. Then it is better to try to use long term trading. In addition to reducing your time so you don't keep paying attention to prices, you are also freer to wait for long-term profits.

I prefer spot trading. Spot trading is best if you have big budget of assets. But future trading is a highly risky game. And if you have't good trading skills then do not trade in future. It is only game for professionals. But if anyone want to start future trading then start with very low leverage maximum 5x. Then it is safer for you.

Stick with stock trading and your friends were right that you shouldnt consider on stepping into futures because this is something that cant just easily make money as the risk is way more higher than on doing spot.

Dont rush yourself on making profits because what matter most here is that you do able to sustain yourself and make profitable at least despite of the losses you had committed or able to experience.

Mistakes are commonly in results of those acts which do people tend to be hasty on making profits without minding about on how big the risk is which we should really be careful.

The safe side it is, the spot market.

Those that have huge confidence for themselves with such high markets like the future, you can attain the risk and do what's going to be the better thing for you as you trade there.

But if you want to stay safe and wanting to avoid too heavy risk on that side, stay on spot.

Spot trading is better if you are a trader who isn't willing to take risk, with spot trading you can never get stopoed out or even lose your entire money if the crypto market decides to crash, just that the value of the coin you are holding will reduce unlike futures trading which will reck you, while futures trading earns you more profit in a shorter amount of time than spot trading will, although it depends on the amount of money you use in trading, btw both I prefer trading futures more risks gives more profit.

What do you mean by which side of the market you want to hold? Of course, it's BTC that you wanna hold. The reason why we trade more on BTCUSDT  is that we are aiming to accumulate BTC.

It's the leverage that really makes them bet on derivatives but it works on both which way the market goes. Leverage also intensifies your loss which you might not have anything to look forward to after the loss whereas if you just stick to the spot, you are left with BTC.

To be perfectly fair however,,, traders to the same thing in spot and derivatives/margin/futures/options. They analyze and measure, their charts can even be more complex than trade.

Stop losses are what really help with protecting bankroll/capital but I think in futures it is much much harder to manage or even understand that.

In future trading there will be more chances of losing your whole money in just minutes, One of my friends had invested in futures and after an hour he had lost all the money , and you should know really well that what would be the situation of my friend at that time. We can say that simple trading would be better.

i never try future trading but base on other people experience in it, some say its quite skeptical and not reliable unlike spot trading, so it never came to my mind to step into it because also of some questions that until now there's no specific answers in my own opinion.  If i were you mate if you feel comfortable and you already making good profit with spot just stick to it at least you make money from it.

I prefer to say that you have not yet made much money, but you are making much money. I think you should learn more to know how to trade better to make "much money." It is not a problem if you can only earn small money because there will be a time for you to make "much money." But if you want to try future trading, you can do that but as you need to learn details about trading. If I were you, I will your friend's suggestion as using future trading does not mean you will have a big chance to make "much money," but that can happen if you have much experience in trading.

Margin trading is very harmful for a beginner's deposit, who seeks to increase it several times in one transaction, while using the maximum leverage. If you have learned how to trade on the spot market, in my opinion, you simply have to start margin trading. Margin trading brings more profit than spot trading, but the risks are correspondingly large.

Yes, many people still doubt it is a scalping casino and despite knowing that the indices in futures trade are a little bit different from the value in the spot trade but can say, many times the stats jump up by huge disparities and make people skeptical that exchanges have played tricks on this common playing field. Despite such proofs, many traders also promise not to continue but with some grudge or passion that seduced them, they still participate while ideally still spot trading

The reason for that is the fact that you could put in 100 bucks and get out with 100k, or even a million dollars. Of course not in a trade (or maybe that is even possible? I don't know) but it is quite easy to do that if you are right at all times on which direction it will go and you just need to be right for a while. I have seen so many of my friends make like 7x profit on just 2k increase on bitcoin price, 2k increase on bitcoin price is basically nothing, and they had 1k invested and got out 7k, and I have seen around this level of profit many times as well, not just once.

You can never make this kind of profit ever in the crypto spot trading world. However the difference is that I have seen them lose the entire 1k as well, and I have seen that happen a lot more frequently. This is why I believe that we should not be doing it if we are newbies or do not have enough funds.

As long as you are trading futures and spots, try to compare the two options that make you more profitable. Or you can compare data for one month using futures trading and one month using spot trading. From these differences, choose the one that makes you comfortable to trade. Your comfort in trading is the most important thing.

I am just wondering if you can't make money from spot trading then how would you believe you will be able to make money from future trading? You can't make a profit from spot trading you aren't experienced much about cryptocurrency trading. I am not much familiar with future trading but I believe only a more experienced person has been doing future trade those are well familiar with crypto movements. Future means just take advantage of the volatility, so it depends on how accurate a trader's prediction is. So, think twice before you do future trading. My suggestion is just to learn more about volatility before start it.

Spot trading is the safest with lowest risk, I guessed the OP had not been making enough money probably due to small funds, if the OP a reasonable amount of investment in spot trading invariably the profits earned will be enough, however future trading is the quickest way to liquidation due to it high risk, personally I prefers cross margin trading whick is  borrowed 3X  plus total total investment
 for trading although that is also isolated margin whick is 10X with reference to binance trading platform.

This is true.. Some people do really think off that they can deal with Futures/Leverage trades easily? They do consider it out if they do fail in Spot? They'll surely realize later on when they do burned out
theirselves in Futures.

People wont believe until they would truly experience it by their own hands.So let them be if they wont really be listening out on peoples advice on here that Futures is more riskier than with Spot.

It would be more worth if they do master out first on doing spot trading before considering on going to futures which at least do really give out some chance for you to make some profits.

I think training on the spot is the most advantageous compared to futures trading even though it is less profitable. Because two days ago when I traded futures on Bitcoin, the Bitcoin price was above $50K. I then took a long time in futures trading but sadly I lost about $400 due to the decline of Bitcoin. As far as I'm concerned, spot trading is much better than futures. Because there is no fear of losing if you trade spot. Although the market is declining, spot trading is expected to pump the market again at some point in the future.So I believe it is better to trade on the spot than to be afraid of losing by trading futures.

One thing you should know both are risky but future is much riskier but more profitable than spot trading. In spot trading you are buying asset while in futures you are gambling your money and you have two options rather to go long (buy) or short (sell).

its depend your trading style, what do you feel more comfortable with. both have different advantages and disadvantages. indeed spot trading is less risk but also according to what you stated it is less earning too. and for futures trading just the opposite. higher risk but also could possibly high reward. indeed future trading its quite gamble as many people said here.

Future is very risky thays why i use only spot trading. Future we may lose while invested token. In spot only Hold  is need. If market crash coin will recovers with time but if someone liquidate he lose all money.

Take the signals of future trading and use them in spot trading. Because  in spot trading there is no risk of losing  your full investment.  But it future trading you can lose all you have. So go with spot trading that's my opinion

Even spot trading is not something you should do if you are not very smart about it, I personally try to stay away from it as much as I can, try to avoid it as long as I can because it makes no sense to trade without having the courage and the data to back you up, so if I know what I am doing on certain trades I do it, but I do not chase trades, I just put my data requirements there, and if anything hits then I trade and that's it.

When spot trading is this hard, and not everyone makes money, then what is the point of someone actually going for futures trading, there are already so little amount of people that make profit consistently on spot trading, and only a handful of ones in them make money consistently on futures trading. I am not saying making a profit, I am saying consistently making profit because everyone could make a profit once in a while.

It is usually best to get really good with whatever you are doing first before you talk about doing other things. How good are you when it comes to spot trading, have you perfected your skills well enough in this area? It is really important that you get very good at the one you’re doing now, and when you’re good you can then think of spreading out to other areas of trading.

Futures it is a good one for sure, there are lots of advantages in it, but that is not to say we should forget the risks that’s involved in it, you can lose a lot of money in futures even in the slightest price movement.

Spoting seems to me the best between spot trading and futures trading. Because if you lose here, your account balance will never be 0.But if you lose in futures trading, your balance will be zero. From sports trading you can be the heart once. But if my account balance from futures trading is 0 You will never be able to recover again. Although your profits from futures trading are high, there are ample risks involved. So I think spoting is much better than futures trading.

Both futures and spot trading are very important features for me, although I could not make much profit by trading futures. Let's fix the future a few days ago I have lost four hundred dollars of liquidity.

I have experienced that future trading is highly risky I have personally lose much money so i won't recommend you to go for future trading if you are at beginner level but if you have some experience in trading then you can go but never use high leverage.

For those who want to engage in Futures, the first step may be Isolated Margin. Using this type of margin trading, you will be able to reduce your risks and limit yourself from losing your deposit. And only after you can trade with profit using Isolated Margin, you can try Futures.
 

Your friends are correct with regards to the risk of losing money, but if you are confident enough and know how it works already then you can try future trading even at least at a small capital, and then by that you can learn from the result of it. At first, I'm losing money at future trading but the moment I understand it and the moment I know how to take advantage the market, I started to make money more than my spot trading activities, this will take a lot of risk.

I did try both spot and futures trading (even copy trading too). In my own experience, futures trading is much more riskier than spot trading to be honest. I’ve lost more money in futures trading than in spot and copy trading combined. This kind of trading is only for those who do not let their emotions conquer them and just treat their deposit as “dead money” no matter the outcome.

To me Spot Trading has limited or no risk attached. Spot Trading is just like buying a coin then leaving it to appreciate more and then sell it to acquire interest. It is a safe way of trading and one can make a lots of money from it if they are trading with large funds. It has no leverage in it which makes it to be less risky. You only trade with what you have.

Future Trading has much risks attached to it cause your entire capital can be gone in a twinkling of an eye. It is a leverage kind of trading that requires increasing one's capital with leverage bringing more profits if one is good in it. The same way it came help one to make large profits, the same way one can lose it entire funds.

Interesting question.

But what I think is most interesting is why you have not made much money from spot-trading. Playing with more risk using future trading is not going to help you if what you lack is fundamental skills. What I recommend you do is go back and find the pattern that did not allow you to come out with the profit you wanted and start from there...

I have stopped trading futures because for me this is a high risk and I have lost more from futures trading so for more than a month I temporarily stopped doing it and focused more on the spot which is now more profitable even though it's a bit longer but I'm happy as long as profit in spot trading I will focus more on it.

But that's how his skills even futures trading are now widely enjoyed because they know more skills are needed in this case, so maybe it's a little unqualified from me so I have to retrain.

Since he isn't very fruitful in spot, he has higher rate of losing more in futures.  But its always different for each person who could translate the charts. If he prefers to go with the trend when trading, he might be able to adjust the risk too. Obviously, when a trend is upwards then betting for the bullish market makes you win.

Its hard for me not to think of rigged markdt when in just an hour or two 100-200B funds comes in and out in crypto market and BTC price movement change up and down very quickly. Hard for me to believe exchanges not playing a role to go against your futures position.

You can try copytrade if you didnt know where you are, but it will cost payment to copytrade, for me thats okay since not too expensive to pay it.
With copytrade, you can learn how to make a good analyse, and thats is the point, you can be analisator one day and maybe you can sell your copytrade to the other and make money from that. Just my opinion.

There is a little difference between spot and future trading, as the names suggest; spot trading pays quickly, whilst future trading takes time. People believe that because they have implemented all of the necessary trading methods and plans, we will benefit in the future. However, keep in mind that plans and planning evolve with time. In addition, the market is extremely uncertain. So, in both future and spot trading, work hard and don't become discouraged.

I believe it is just the opposite. Futures trading is something quick, you leverage your stance and then you take away whatever you can very quickly and you get out, if you wait too long then you are going to lose all of your money, that's how it works. Spot on the other hand is something you will never get liquidated which means that you could literally make as much money as you can while waiting as long as you have to.

I mean sure you could wait with futures as well if you want to but it would be very risky and you will not be profiting with it if the price suddenly goes down, whereas in spot trading it could go down a lot but you will at least have time to wait for it to go back up and that waiting period makes it longer time then futures.

One of the things that they do really differ is on that leverage side because it might really look that fast but its just the same imho.The thing here is that you do really deal with fast pace kind of decision because you could really be easily be liquidated with future or leverage trading which your capital could easily blown up if you dont able to cut loss whenever the price is going opposite on what you had predicted.

Choose on what you do like because some do love Futures and majority is been sticking with Spot because it is somewhat less risky basing on experience.

As long you do make profits then that what matter most and its a personal choice because not  all would really be that risk takers.