Alisha-k (OP)
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October 05, 2021, 05:00:19 AM
Last edit: October 07, 2021, 12:12:51 PM by Alisha-k |
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There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
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adaseb
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October 05, 2021, 05:08:39 AM |
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There are 3 actually, the last one is margin trading. It might seem the same as futures however its slightly different than futures.
Basically on margin you got much less leverage, usually 10x instead of 125x. You also pay different fees and the bitcoin that you long, is actually bought on the real spot market. So you are not buying a derivative like you are on the futures platform.
With margin you pay a fixed rate depending if you long or short bitcoin. And on futures the rate is determined by the funding rate or the futures premium/discount. So they are more or less the same but with different rules.
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michellee
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October 05, 2021, 05:28:24 AM |
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For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
Future and margin trading will not suit newbies, especially if they do not have much knowledge in analyzing the market and they will panic to see the price is down for a little.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Be careful deciding which types of trading you want and I suggest using spot trading while learning more about trading.
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Oshosondy
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Gamble responsibly
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October 05, 2021, 07:15:43 AM |
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There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
On binance, there is margin trading, it is merged with spot but not the same as spot, it is even related more to future trading because you can leverage up to 10x using margin trading. While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Also 1x long on future trading should not result to liquidation, what can result to liquidation is 1x short or increasing the leverage which incresses the risks, I will not encourage anyone to go for future and margin because they are very risky, million of dollar can easily be liquidated in just few minutes or hours. For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
It depends on the coin, I will say yes if you are talking about bitcoin, but many altcoins are shitcoins, their price will dump but will never rise back and remain shitcoins forever, newbies should know, learn and understand the coin he wants to trade with. |
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CryptopreneurBrainboss
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October 05, 2021, 07:55:16 AM |
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For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
Newbie reading this shouldn't just jump into trading as it isn't as easy as you read, there is no guarantee the next high price as majority of the coins been pump today dies down before the next bull runs come along. The only coin that can guarantee you the next high price is Bitcoin and instead of trading, holding is the best option. Skills and experience is needed if you intend been profitable in any of the three forms of trading on the Binance exchange and instead of jumping on any coins listed on binance exchange, carryout some research to guarantee you're not trading some hype bullshit because Binance exchange has been guilty of listing many of those of recent. When you think of it, it's more like they no longer carryout in depth research anymore before listing a project, they're just after the community speculating on the project, putting their hunger to dominate the exchange industry over the safety of their customers. |
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jossiel
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October 05, 2021, 08:12:10 AM |
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Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
You can if you sell all of it. That's how you lose your coin there when you sell it at losses or even in profit. You no longer own and you no longer don't have that coin of yours because you've already ordered it to be in sale and somebody took that order. |
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davis196
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October 05, 2021, 11:26:19 AM |
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OP,is this post about the different trading strategies or just the types of trading? The bulls and bears have different strategies.Bulls are buying low and selling high,the bears are selling now and expecting the price to drop,so they could buy at a lower price. There's also scalping,where the trader is buying and selling multiple times per day,making small profits out of multiple trades. The traders,who don't have a particular strategy are called "sheep",if I remember this correctly.  Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green. There's a risk of losing your coin,if the crypto exchange scams you,or your trading accounts gets hacked.  |
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airdata
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October 05, 2021, 11:38:21 AM |
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Spot trading is most secure and safety option for crypto currency trading, maximum people use spot option for crypto trading but i see many people use future trading option and at the end maximum people lost their fund. My clear opinion is that Spot option is better than Future trading.
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Nigrinn
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October 05, 2021, 12:39:08 PM |
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The best way to raise which type of trading is suitable for you is to try both options and then decide.
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tranthidung
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October 05, 2021, 01:06:45 PM |
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I would prefer to clarify trading into two categories - Gambling trading: When you simply make buy and sell orders, without your own research about projects and liquidation formualas, etc.
- I meant when you see price skyrockets or plummets, you have to make your research why did it happen. If you simply make buy or sell orders because of big green or red candles, you will complete your trade with loses. Not all dips are great to buy and can help you get profit.
- Knowledgeable trading: when you are traders who already do in-depth research about projects & exchanges (liquidation) for your trade and have your own risk-benefit management.
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crwth
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October 05, 2021, 01:51:26 PM |
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I appreciate your post here even though it requires more and more study and discussion so newbies can understand. It's easy to say that this and this goes with this but the practical application would be the best way to learn. Like registering to Binance or any other exchange that provides those different markets and just see the features in it. One of the best ways to learn about trading is through the academy of Binance. I just appreciate how they provided so much knowledge and just made it into the academy. It's worthwhile reading. https://academy.binance.com/en/start-here |
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palle11
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October 05, 2021, 01:55:55 PM |
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With my view as a trader I can say future trading is trading and spot is hodling where we can consider investors, this is the way I see it. This class of people are those that are always scared of fud, they jump out at any slightest assumed negative news. They are always scared of doubling there money in both ways, that is in falling and rising of price like a real futures trader.
In futures is the trader. That person with passion to fight with others to spontaneously take out his or her share of the daily or swing money revolving in the market. This futures can be considered to have some pattern of trading like the scalper, daily trader or swing trader. This is my genuine idea of it because I don't see a hodler to be a trader.
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Betaj00
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October 05, 2021, 01:59:05 PM |
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I know about this two type of trading Spot and future trading, but i see one more option on Binance exchange, margin. I don’t know about this but i always use Spot exchange for Trading.
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sirminesalot
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October 05, 2021, 02:13:51 PM |
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Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
This is literally true but there is some cases when the coins value becomes nothing and then removed by the exchanges, we only could sent back the coin the our wallet or move it to another exchange who still list the coins. But if it's already happen with big exchange, the coins must be so dead and the price won't recover, there are several coins which experienced this, so becareful and always placing a stop loss even trading in spot |
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Kanjeung
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October 05, 2021, 02:24:19 PM |
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i have never tried futures trading, i just found out now. so future trading is very risk to trade if we are not experts in that field. but i see on binance there is p2p, what is p2p? i have never tried trading on the biggest market (binance). |
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sheenshane
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October 05, 2021, 02:34:10 PM |
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i have never tried futures trading, i just found out now. so future trading is very risk to trade if we are not experts in that field. but i see on binance there is p2p, what is p2p? i have never tried trading on the biggest market (binance). I rather say, margin trading is quite risky than the future trading in Binance, it seems like they have been the same faces that are profitable but they had different types of the risk level. Trading isn't an easy job and might newbies here will mislead that it's easy to gain profit in trading, I never spot trading but margin and future are quite opposite to me. However, I'm didn't have much technical idea about this. In Binance FAQ there's a video that explains you much better than me. What Are the Differences between Margin and Futures Trading |
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john_nautica
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October 05, 2021, 02:38:02 PM |
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You are true about spot trading, in spot trading you are buying an asset and no matter what happened to the price the number of your coin will still the same but in regards with futures trading you will need to leverage your coin in simple terms it is like betting your money and your money can be lost. So for beginners it is recommended to stay in spot trading rather than going to futures immediately.
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Ararbermas
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October 05, 2021, 02:59:35 PM |
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There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HOLD for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
that's why most user in binance preferred spot trading because on that way they can can really tell that the money/capital is totally safe wherein unlike future trading that in just one mistake there's a chance to have a massive loss, perhaps only long term holder can enjoy such features in binance because they're good at making technical analysis in such way. And short term traders are for spot trades only just to obtain quick profits.. Lol |
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The Cryptovator
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October 05, 2021, 06:04:50 PM |
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I am just away from the futures trading. Because it seems like a gamble to me and I am not good in the gamble or predictions. Whatever I am trading in is just spot trading. Future or margin trading isn't for all. Because everyone isn't a good analyzer or predictor. So without much experience, it's hard to win in margin or futures trading. Spot trading is quite safer than futures trading for beginners.
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Mamun74
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October 05, 2021, 06:26:35 PM |
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For newbies, I'm suggested you.You can buy token or coin holding is best option .I think,Trading for newbies is not an easy. When you start trading then you need to more patience and control your emotion.Most of newbies don’t control Their emotion and they lose money cz when coin price little dip they did sell their coin and lose money. So you can hold and i think you can get good profit total in future from your holding coin or token.
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