Basic Types of Trading

[Bitcoin_Arena]

I think futures is a very misused word. Traditional Futures contracts have and expiry date while perpetual swaps don't have any.

What is very common in cryto derivatives exchanges are perpetual swaps with very few futures contract.

So the best way to say is there is spot trading and derivatives trading not (futures trading)

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[taufik123]

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.

Emotions are a weakness for everyone. because if trading cannot control emotions then the trading strategy will not work well. In addition, beginners also have to choose whether they want to trade SPOT, FUTURES or MARGIN. Spot is safer for beginners because when you buy it you just have to hold it until you make a profit. Holding good coins for the long term or as a long term investment would be great.

For futures and margin trading it is not suitable for beginners who are new to trading because of the greater risk of loss, the determination of leverage must be as wise as possible so as not to be exposed to Liquidation.

[Issa56]

I I always advise people that still new in Cryptocurrency not to near future is better they are stick to stop that everybody knows that the price of the coin will drop and if you are holding a good coin it will definitely recover again with time but If you are into future you can get liquidated at any moment and you lose all the money you put in the trade, I just believe future trading is just like gambling you are gambling if a coin will pump or dump with is very bad. If you are into future make sure you use small lavagera you can make use of stop lose when necessary thanks.

[stomachgrowls]

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.

One  of the pros on doing spot vs futures/margin trading is that you dont totally lost up the coins you do have but rather lose its value but as long you dont close your position or make some sell then
you wont lose nothing which is totally different with futures.

This is why when you are just starting of with trading then stick with spot for long time and trying to familiarize everything and trying your best to be  sustainable.Most of the time i do consider
futures/margin to be on that gambling part.

Risk is high but reward is also high too but since we are minding off about long term run then i wont really suggest this type.

[CryptopreneurBrainboss]

I just believe future trading is just like gambling you are gambling if a coin will pump or dump with is very bad. If you are into future make sure you use small leverage, you can make use of stop lose when necessary thanks.

Well so is speculating on the spot market without any prior knowledge analysing the market. Basically if you're into trading without the skills of analyzing the market then what you're doing is gambling with your money. And that's what majority of the so called traders in the industry are doing, which is why statistics is against traders when it comes to been profitable.

Future trading is just advance trading, and not gambling if you know what you're doing. if you have enough funds you can keep your position open for as long as possible but make sure to close the contract before it expires. Newbie aren't advice to engage in future trading because of the risk involved as that aren't risks a newbie should be taken.

Stick to spot trading for the moment and gain as much trading experience as possible before wanting to engage in advance trading (which is future or margin trading) because you'll need all the experience possible to succeed over there.

[kawetsriyanto]

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.

I also did the same way, only trade for spot trading. Spot trading is much easier to do, but surely it also has the same risk of losing money. But the future has a bigger risk because it can lead to losing everything, while in the spot mostly just decreases the number of money if selling at a lower price. I assume most people prefer to choose a spot trading than future, especially those people who are still newcomers in crypto trading.

[Oceat]

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.

I also did the same way, only trade for spot trading. Spot trading is much easier to do, but surely it also has the same risk of losing money. But the future has a bigger risk because it can lead to losing everything, while in the spot mostly just decreases the number of money if selling at a lower price. I assume most people prefer to choose a spot trading than future, especially those people who are still newcomers in crypto trading.

I'd rather stick to spot trading than gamble to future/margin trading since I am really that good when gambling since I just play when I want to pass time. So for beginners, spot trading is always the best choice but before they even start to wonder in actual trading newbies must have first to practice more on a demo account and until they are confident enough to hurdle the spot trading actually.

But for some advanced user/people who just like to gamble with a lot of experience in trading then future/margin is for them. The higher the risk the higher the rewards.

[Oshosondy]

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.                         

Future trading can lead to maximum losses and it is the most risky depending on the leverage used, the higher leverage used the higher gain or losses can be but people can lose than gain which makes future trading the riskiest. But not that they are not secure or safe, they have the safety and security spot trading have, but maximum safety is on noncustodial wallet which you have completely control over.

The best way to raise which type of trading is suitable for you is to try both options and then decide.

Best to use low amount of money, $50 is not bad for spot trading while $20 is not bad for fututres. Also going above 5x leverage is gambling while 5x leverage is still if high risky that can easily result to liquidation.

[Zilon]

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.

Choosing which type of  trading you venture into depends on the trader and how much patience they can adopt. Both are risky and risky if a spot trader lacks patience and discipline they might sell the dip out of fear and still run at loss. Like wise a future trader who would lose of their prediction doesn't match the direction of the market.

Non of the trading types is easy not even margin trading which is even more deadly for a starter or even a professional trader because most times since you are trading with assets that was given as a loan you might apply greed so as to raise a person capital

[Jaycee99]

First Iam going to answer this base on what I learned and know.

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
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.

In addition to this ideal basic type of trading or rather a reminder, you need to focus on its market cap on its highest. Likely if the market cap reaches more than 2 times a month you could have a great deal of income return. Yes on SPOT trading you can never lose a coin but you need to look wider and out the box, if an ICO or a value of a coin hits one capital/ cap in a month it is a big no. At first you may see its cheaper and you attracted to the most basic rule of trading buying low and selling it highest even if its HOLDING a coin.

in trading and it specifically point out on another coin it is a risk but for me from my point of view with it is bitcoin and ethereum this spot trading would really be good and be applied to the idea and type of term of spot trading.  

You can HOLD on a coin that has the potential to grow or potentially grown many times a year.

📌 FUTURES trading: you predict whether a particular coin is going to rise or fall in price, if it goes in the opposite direction from your prediction, you lose your money, and your coin

This type of ID is applied to all coins you can lose it and win it but it is connected to spot trading it is no different as it is connected but not the HOLD.

Specifically, you need to pick the right coin to play with and the big candidate for that is bitcoin no other ICO of me in which base on my point of view.

[proTECH77]

Future trading and spot trading are good for traders to earn well in the market. When you are focusing on future trading at this season we are, is a good idea because many coins has reduced price in the market. Any trader that is  purchasing for future Profit making will really achieve good profits at the end of the trading. If you really understood what you are doing in the market , you will never loose you coins than to achieve something good your trading.
Spot trading required experience or good knowledge before you can buy any coins of your choice and hold until the price of that particular coin increase before you can sell to earn well. In this spot trading you must not joke with your time and knowledge, for you to get it right at the end of the market.

[so98nn]

There are many many types of trading. To this you add staking, margin, grid trading, and now a days Liquid swap is also way popular if played with the right coins. Moreover, these all are not just recent players, they are way too old and peeps are doing it since before the binance.

I have seen so many staking threads on the forum all the time. Then in the beginning of 2020 liquid swap trade started popping up. It's nice to see we more options in the crypto world than share market or stocks.

[ethereumhunter]

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.

It is true, but if you do not sell your coin and still hold when the price is down. You will have a chance to see your coin price increase someday so you will be back to see the high price for your coin and make a profit. But many traders decide to cut loss their coin when the price is down with the hope that they can buy back at a lower price. I think that will depend on their strategy to be applied in the trading and every trader will have their own strategy to the current situation in the market.

[ultrloa]

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.

It is true, but if you do not sell your coin and still hold when the price is down. You will have a chance to see your coin price increase someday so you will be back to see the high price for your coin and make a profit. But many traders decide to cut loss their coin when the price is down with the hope that they can buy back at a lower price. I think that will depend on their strategy to be applied in the trading and every trader will have their own strategy to the current situation in the market.

Cut loss and buy back is kinda basic thing to do once market is at bad situation but unfortunately not everyone can able to do that since many is unsure about what will be the outcome at the end of the day, also they are afraid on what will happen if they are out and didn't follow at the market at that day but hopefully other will realize that cut loss is best option for us to recover if we lose in value but also make sure the coins or the tokens we buy is listed at the top and a worthy one.

[ethereumhunter]

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.

It is true, but if you do not sell your coin and still hold when the price is down. You will have a chance to see your coin price increase someday so you will be back to see the high price for your coin and make a profit. But many traders decide to cut loss their coin when the price is down with the hope that they can buy back at a lower price. I think that will depend on their strategy to be applied in the trading and every trader will have their own strategy to the current situation in the market.

Cut loss and buy back is kinda basic thing to do once market is at bad situation but unfortunately not everyone can able to do that since many is unsure about what will be the outcome at the end of the day, also they are afraid on what will happen if they are out and didn't follow at the market at that day but hopefully other will realize that cut loss is best option for us to recover if we lose in value but also make sure the coins or the tokens we buy is listed at the top and a worthy one.

Many of them are late to use stop loss and finally, they are getting lost in a big-money by selling their coin. If they can set the cut loss before the price drops, making a cut loss will be good as they can buy back at a lower price. But most of them do not realize that instead of placing their stop loss in a rush because they do not analyze the price before. That makes them get more losses because they are unsure how deep the price will go down.

[Jazzi Mahesh]

Not a single strategy is going to work for the traders, they need to change the strategies from time to time.

[Alisha FR]

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.

Yes, I prefer spot trading, When my financial condition is sufficient for daily needs. However, spot trading must have patience, and must have a high mentality when the market is dump. This trading technique is perfect for new traders, provided that don't buy coin memes. Since the future of the meme coin is unpredictable, it may die in the market due to the abandonment of its owner.

[rahmatullah9305]

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.

Choosing which type of  trading you venture into depends on the trader and how much patience they can adopt. Both are risky and risky if a spot trader lacks patience and discipline they might sell the dip out of fear and still run at loss. Like wise a future trader who would lose of their prediction doesn't match the direction of the market.

Non of the trading types is easy not even margin trading which is even more deadly for a starter or even a professional trader because most times since you are trading with assets that was given as a loan you might apply greed so as to raise a person capital

Yes, that's right, mental stability is really needed in trading. Never panic when the price drops, it will make traders sell it so fast when the market goes down. By buying a good ALT, then we just need patience to wait for the market to rise and sell it when we get a profit by holding to avoid losses.

[Silberman]

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.                         

Spot trading is less risky but I do not know if the use of the word secure is correct here, trading always involves a risk and what many newbies do not understand is that those that are actually successful in any form of trading are those that can manage their risk correctly and this is what ultimately separates the good traders from the bad traders, since bad traders take too many risks and while this can bring profits once in a while once they make a mistake and make a bad trade that is when they lose a significant amount of their capital to the markets.

[samcrypto]

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.                         

Spot trading is less risky but I do not know if the use of the word secure is correct here, trading always involves a risk and what many newbies do not understand is that those that are actually successful in any form of trading are those that can manage their risk correctly and this is what ultimately separates the good traders from the bad traders, since bad traders take too many risks and while this can bring profits once in a while once they make a mistake and make a bad trade that is when they lose a significant amount of their capital to the markets.

They all have the same risk, especially if you are not knowledgeable about the market even if you do spot trading, you can still lose everything in an instant. I personally thought about types on trading is about, day trading, short term and long term trading well we all have different classifications on types of trading. Whatever it is, if you're into trading you always have to do your best on your analysis and continue to improve your knowledge so you can have a good trades.