Spot Trading vs Margin Trading - Which is the best Strategy?

[goldade]

Actually none is the best strategy. One should do which is suitable to one however trading spot is usually advised for traders who are just starting out. It is advisable to trade spot until one have understood how the crypto market works especially with fundamental and technical analysis before one venture into margin trading.
Margin trading gives the benefit of trading with borrowed funds from the exchange and it multiplies both the profits and the losses.

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[BuNga_cute]

Margin trading is only for professional traders who already have good trading skills. While spot trading is great for newbies,
because the risk is not as big as margin trading. It is true that margin trading is much more profitable than spot trading,
but not everyone can make profit from margin trading. I have had bad experiences with margin trading, so I recommend
avoiding margin trading, it's better to use spot trading a much safer.

[Savemore]

Margin trading is only for professional traders who already have good trading skills. While spot trading is great for newbies,
because the risk is not as big as margin trading. It is true that margin trading is much more profitable than spot trading,
but not everyone can make profit from margin trading. I have had bad experiences with margin trading, so I recommend
avoiding margin trading, it's better to use spot trading a much safer.

There is misunderstanding because a experienced trader can also choose margin trading as long as they have proper risk management. If you are a beginner, I will not suggest that you should first make a trade using margin because for sure you will lose it real quick; it is better to make practice and become used in spot trading first. Margin is about borrowing funds and it is not about easy money in trading. A lot of traders think that they can make money easily in margin where it is a myth because the risks are much higher than doing spot trading because you are borrowing the exchange funds. Do not switch into margin if you are still not experienced trader in spot trading.

[davinchi]

If you are going into crypto with under 50 dollars and you want to make sure that you make the most money out of that 50 dollars and using regular spot trading with just 50 dollars will usually not yield you anything proper. So, what you do? You either go with margin trading to make more money with high leverages and risk it all being liquidated if you are wrong, or you could just focus on lower level altcoins that could make you 2x or more.

Even spot trading ethereum this year could have turned 50 dollars into 200 dollars which is not really a big amount in dollars but a great return. However if you have a lot of money, you should stick with spot trading, that would always be a great return if you have a big enough capital to work with and you can be happy with the returns.

[CryptopreneurBrainboss]

the best strategy for me is still using the spot market, because in the spot market we like investing in it,
and don't have to worry about losing our capital, yes if a dump occurs and you can read the chart you can sell it,

That's some wrong thinking right there, you can lose your capital in the spot market when you don't know what you're doing especially when there's a flash crash and you stop loss entry was missed or you didn't have that set up in the first place. During the DeFi crash we saw altcoins losing close to 90% and even more of their value that means any investment capital most have gone down minus 90%.

A trading account with capital that was worth $1000 will be having just $100 to left. While that of margins trade would had probably cleared the account still having just 10% of your investment capital isn't something we should settle for as it isn't better than losing it all in this case, they both are loses.

[Strongkored]

Nothing can be said to be the best from both strategy, both still require expertise, the best strategy in my experience in trading is when setting up stop lost.

That's some wrong thinking right there, you can lose your capital in the spot market when you don't know what you're doing especially when there's a flash crash and you stop loss entry was missed or you didn't have that set up in the first place. During the DeFi crash we saw altcoins losing close to 90% and even more of their value that means any investment capital most have gone down minus 90%.

A trading account with capital that was worth $1000 will be having just $100 to left. While that of margins trade would had probably cleared the account still having just 10% of your investment capital isn't something we should settle for as it isn't better than losing it all in this case, they both are loses.

And this is what happens to a trader who buys coins at a price hundreds of satoshis but now the coin price is only about 5-10 satoshis, from a hundred dollars now only a few dollars left in less than 1 month.

[MCobian]

I have tried both, spot trading and margin trading are risky. But if we compare the risks, of course, the margin trading is greater the risk.
Depending on our trading skills, if we already have good trading skills, there is nothing wrong with trying margin trading. Because margin
trading can generate profits that are much greater than spot trading.

[Harriti]

To me, newbie should just Spot trading instead of Margin trading. In Spot trading we simply look at the signals, then buy and place a stop loss, wait for the price to rise and then sell at the desired profit.
As for Margin trading, traders must understand the value of the leverage levels in order not to trade with too large a volume. In addition, we also have to calculate volume, determine support / resistance points, under pressure when prices rise and fall nonstop, ... there will be a lot of difficulties for newbies. Newbie's ability to lose money in Margin Trading is over 93% because no one can withstand the pressure when trading.

[celot]

Spot trading still the best option because we can stay with our money although have lower price from coin trading, but when back again to higher price we have chance to get back profit. For margin trading I think have the same work with future trading where wrong prediction your assets or trading salary is gone. Maybe for expert is good to trade with margin but for beginner and low budget for trading better to choose as spot trading with always have chance although coin dump will back again to higher price later, just patient with how long your coin trading back to higher price again.

[mersal]

I have tried both, spot trading and margin trading are risky. But if we compare the risks, of course, the margin trading is greater the risk.
Depending on our trading skills, if we already have good trading skills, there is nothing wrong with trying margin trading. Because margin
trading can generate profits that are much greater than spot trading.

Spot and margin trading are just the same thing with capital from different sources, so the risk associated with both kind of trading are similar.Margin trading is risky because we are taking funds from somewhere so we are obliged to pay the money back so extra pressure will be added while doing it which I never recommend for anyone to do.

[hossamdz]

my opinion is , if you are not an expert trader you should stick with the sport trading , low profit but also you wont risk with your money

but if you are bored of spot trading you can try margin but just take it on your mind that the risk in margin trading is very high and you can lose your money within  seconds of your journey .

[Lanatsa]

my opinion is , if you are not an expert trader you should stick with the sport trading , low profit but also you wont risk with your money

but if you are bored of spot trading you can try margin but just take it on your mind that the risk in margin trading is very high and you can lose your money within  seconds of your journey .

Spot trading isn't really that risk-free but rather it would be much lesser risky to margin because if we do talk about between margin and spot then you can spot out
the risk that been given or you do deal with it.

If you don't have that kind experience and knowledge towards trading in a long time then better not to rush up with margins but if you
do saw that you are already capable enough then you can test it out.

Just stick out on which one would really be profitable for you but same as suggested that as a beginner then its ideal to start with spot.

[Rodeo02]

my opinion is , if you are not an expert trader you should stick with the sport trading , low profit but also you wont risk with your money

but if you are bored of spot trading you can try margin but just take it on your mind that the risk in margin trading is very high and you can lose your money within  seconds of your journey .

It's almost the same risk with future trading same risk to lose all your money in worng prediction. Yes if you are novice in trading you should start to learn it first in spot trading once you learn spot trading you can now move to margin if you know you can now trust your own prediction. While you are learning in spot trading you can also collect some ideas that you can ask for other traders that you think can help you in the future.

[Issa56]

It has not been long I started trading but from the little experience am having I believe in spot trading, margin trade is for expert and not for newbies!!! The risk of margin trade is too high, but the profit is also high but am not interested in margin trading so am into spot trading and am making my cool profits there!!!

[imstillthebest]

It has not been long I started trading but from the little experience am having I believe in spot trading, margin trade is for expert and not for newbies!!! The risk of margin trade is too high, but the profit is also high but am not interested in margin trading so am into spot trading and am making my cool profits there!!!

thats what you heard from the others but you have not tried it on your own for you to say that margin trading was really hard ?
 you should try it if you havent because you will never know if you can also adopt it .
 more risk is more profit, thats true and works in everything not just in trading  .
i love to face greater risk on all the thing that i do because im always after for the reward but at the same time it also crafts or build you as a better person .

[Rengga Jati]

To Know More, Visit Here <> Spot Trading vs Margin Trading

As I also have been doing so far, as a beginner trader, spot market trading is the best choice for beginners. This is low risks but also probably a long time to get profits or lower profits in a short time. However, if the price continues dropping after buying, in this case, we will not lose our money as long as we still keep the coins and not panic sell. However, think about the cut loss may be wise enough in order to know the market condition whether will be dump more and more or only market correction and rising again.

However, if you have been ready with such quite higher risks, I think that the margin market is good and suitable. We can double our funds and also profits with this. but of course, the level of the risks are higher.
So this is it, just think what you think that this is good for each.

[Mariyamfranklin]

Spot trading allows to buy and sell cryptos at the present market value. In Margin trading, one can borrow funds from the exchange and can use them for trading. Each has its pros and cons.

You can read a blog on types of trading at https://koinpark.com/blog/comprehensive-guide-on-types-of-trading