Basic Types of Trading

[kawetsriyanto]

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.

For the experts or experienced traders, trying to expanse their trading to "future or margin" is no problem. They have enough knowledge and experience to trade in "future or margin" properly. I only warned newbies to avoid using "future or margin" because they still have not enough capacity to begin trading there. The focus for newbies is to learn first, so spot trading is the safest place. While the experts/experienced traders, may target bigger profits, so future/margin can be the right place for them.

[BIN-BIN]

This two type is only on binance because we have more than two types of trading, merging trading is also there and others such as you mentioned, futures trading is kind of gambling in nature you can take action as a trader all you can do is to set a trading outcome and wait for it to happens, this is risky and not advisable for newbies.

[Oshosondy]

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.

We should always point out that there are specific coins that their price can decrease but holders should not cut loss because the price of the coins will increase back, coins like bitcoin, ethereum, binance coin and some other coin like that, but there are some coins that are shitcoins, their price will decrease and never increase back but dump more, some even later become dead coin. We should know the type of coins we are dealing with, not all coins are good to buy.

This is most newbie mistakes, because they buy and the price dump, they will decide to cut loss which suppose not to be, they cut lose and they lose money, what is funniest most is that some people will cut loss and the price will not decrease further but start to increase, or the coin will just take a little further decrease and start to increase, this happened to me many times when I was a newbie.

[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.

We should always point out that there are specific coins that their price can decrease but holders should not cut loss because the price of the coins will increase back, coins like bitcoin, ethereum, binance coin and some other coin like that, but there are some coins that are shitcoins, their price will decrease and never increase back but dump more, some even later become dead coin. We should know the type of coins we are dealing with, not all coins are good to buy.

This is most newbie mistakes, because they buy and the price dump, they will decide to cut loss which suppose not to be, they cut lose and they lose money, what is funniest most is that some people will cut loss and the price will not decrease further but start to increase, or the coin will just take a little further decrease and start to increase, this happened to me many times when I was a newbie.

Indeed, I see that many of us cut loss the coin by selling at a low price when the price is down. They do not think that the price can increase anytime, so they only think that selling their coin will save them from a big loss because the situations seem to be getting drops too deep. Well, that will depend on how our analysis because as long as that is about the potential coin, I think we can still hold the coin and buyback for more when the price is down.

I think it is how we can manage our emotions related to the current situation at the market and how good we can analyze the price so we do not get the impact from the downtrend. Maybe it will need more experiences to have that control and that is worth learning about that.

[SquallLeonhart]

Indeed, I see that many of us cut loss the coin by selling at a low price when the price is down. They do not think that the price can increase anytime, so they only think that selling their coin will save them from a big loss because the situations seem to be getting drops too deep. Well, that will depend on how our analysis because as long as that is about the potential coin, I think we can still hold the coin and buyback for more when the price is down.

I think it is how we can manage our emotions related to the current situation at the market and how good we can analyze the price so we do not get the impact from the downtrend. Maybe it will need more experiences to have that control and that is worth learning about that.

Unfortunately those people are not too much involved in the crypto world, if they were involved then they would know that crypto prices crash all the time, and it will crash again in the future, many times as well. What matters is not the crash, what matters is that you should either do nothing and wait for it to go up or you could buy even more after it crashes to drop your average purchase price and then make a profit.

Long story short the best way to make profit is to never sell when you are in a loss. This doesn't work in horrible coins of course, if you are holding a horrible coin then you can sell, but if we are talking about something like bitcoin they always hold until you profit, it will eventually go up there.

[BruceLee98]

The two main basic types of trading is
1. Spot trading
2.Futures trading
THE SPOT TRADING: this is a type of trading usually recommend for newbies coming into the crypto space. The spot trading allows you to buy a particular coin of your choice and allows you to HODL in your own person wallet for a certain period of time and then sell when the coin appreciates in value. Spot trading is safer because you don't lose your money except you sell below your buy price.
THE FUTURES TRADING: This type of trading is usually found among experts and it's associated with high risk. The futures trading give you the opportunity to use a certain amount of leverage to trade a particular coin. Futures trading require enough skill and discipline to help avoid emotional problems when the market is against your analysis.

[gabbie2010]

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.

Futures trading had more risk than spot trading imagine a trader leveraging with 125X compared to spot trading which is more less 1X a big drawdown or pull back of price will liquidate a future trader's portfolio whereas a spot trader will have their portfolio intact though in a loss, with a good strategy a trader can earn reasonable amount of money in spot trading though requires a considerable amount of funds, thus a good advice to all newbies to start trading with spot trading.

[kawetsriyanto]

This two type is only on binance because we have more than two types of trading

Spot and Future trading are also found on some other exchanges, not only in Binance. Since Future trading has become popular, many exchanges try to have their own future market because many traders possibly try this market. Mostly in the top exchanges, the Future market will be found, it already becomes the main part of crypto trading now. Although it is riskier than Spot, Future offers bigger profits.

[molsewid]

We should always point out that there are specific coins that their price can decrease but holders should not cut loss because the price of the coins will increase back, coins like bitcoin, ethereum, binance coin and some other coin like that, but there are some coins that are shitcoins, their price will decrease and never increase back but dump more, some even later become dead coin. We should know the type of coins we are dealing with, not all coins are good to buy.

This is most newbie mistakes, because they buy and the price dump, they will decide to cut loss which suppose not to be, they cut lose and they lose money, what is funniest most is that some people will cut loss and the price will not decrease further but start to increase, or the coin will just take a little further decrease and start to increase, this happened to me many times when I was a newbie.

Based on my personal experience I do hold some coins in SPOT in my binance wallet and based on my observation there are some specific coins that was worth to hodl in spot trading even if the price of the token decreases because there is always a chance that the price may certainly goes up again and no need to question if bitcoin, ethereum or any on the listed top token in the market are worth it to hodl. Now, I personally hodl coins that was related to NFT games and defi and I still hope it's worth to trade in spot trading i'm still holding and wait till the value gets high again, hopefully.

[Oshosondy]

Based on my personal experience I do hold some coins in SPOT in my binance wallet and based on my observation there are some specific coins that was worth to hodl in spot trading even if the price of the token decreases because there is always a chance that the price may certainly goes up again and no need to question if bitcoin, ethereum or any on the listed top token in the market are worth it to hodl.

There is nothing bad to hold in spot as a trader, but not also bad to hold in future. The fee in future is less than the fee in spot, this can be a good way to lessen fee for traders, but not swing traders or holders because they do not trader often like day traders, holding in spot is not bad at all. But I will advice you to move the coins to your noncustodial wallet if you know you only want to hold, to be able to have full control over your coins.

Also the coins listed on future trading are not much like those listed on spot trading, I mean just only few coins are listed on future trading on exchanges, that is the reason some people will like to make use of margin trading all because they do not see the coin to trade listed on future trading but coins listed on spot can be used to for margin trading, that is why spot trading and margin trading are together.

[ethereumhunter]

Indeed, I see that many of us cut loss the coin by selling at a low price when the price is down. They do not think that the price can increase anytime, so they only think that selling their coin will save them from a big loss because the situations seem to be getting drops too deep. Well, that will depend on how our analysis because as long as that is about the potential coin, I think we can still hold the coin and buyback for more when the price is down.

I think it is how we can manage our emotions related to the current situation at the market and how good we can analyze the price so we do not get the impact from the downtrend. Maybe it will need more experiences to have that control and that is worth learning about that.

Unfortunately those people are not too much involved in the crypto world, if they were involved then they would know that crypto prices crash all the time, and it will crash again in the future, many times as well. What matters is not the crash, what matters is that you should either do nothing and wait for it to go up or you could buy even more after it crashes to drop your average purchase price and then make a profit.

Long story short the best way to make profit is to never sell when you are in a loss. This doesn't work in horrible coins of course, if you are holding a horrible coin then you can sell, but if we are talking about something like bitcoin they always hold until you profit, it will eventually go up there.

That will happen many times and if we are not ready for that situation, we will not survive in the bad situation instead will leave the crypto because of disappointed with the situation. When the crash comes, we need to calm down and be patient and try to use the moment to buy more.

We need to have a strong hand to hold the coin, especially in a crash situation but that will depend on the coin itself. If the coin is worth holding, then that will be okay to still hold in the crash market.

[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.

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.

I will have to disagree with you there, risk exist in every single form of trading and in every single asset you choose to invest, but the risk has different magnitudes, for example it is not the same to invest in bitcoin than to invest in a coin that is being released today, investing in bitcoin has a risk but investing in a new coin has probably 100x the risk you are incurring by investing in bitcoin, and the same is true with spot trading and other forms of trading like futures trading.

[Ryker1]

Well, all I know is the most basic part of trading is the sell high and buy low, that is the only basic part of trading that I have known since I was entering the trading world. And the OP mentioned is not basic for me, it required a lot of technical strategies before you will potentially gain profit on it. There is no basic strategy in trading that you will gain so fast, it needs patient and just achieve your aim target profit. Spot trading and futures trading are far different if we compare them, but all of them need patients because all of them are in a long-term trading plan. Traders would always prepare for whatever happen to the market.

[LUCKMCFLY]

Indeed, I see that many of us cut loss the coin by selling at a low price when the price is down. They do not think that the price can increase anytime, so they only think that selling their coin will save them from a big loss because the situations seem to be getting drops too deep. Well, that will depend on how our analysis because as long as that is about the potential coin, I think we can still hold the coin and buyback for more when the price is down.

I think it is how we can manage our emotions related to the current situation at the market and how good we can analyze the price so we do not get the impact from the downtrend. Maybe it will need more experiences to have that control and that is worth learning about that.

Unfortunately those people are not too much involved in the crypto world, if they were involved then they would know that crypto prices crash all the time, and it will crash again in the future, many times as well. What matters is not the crash, what matters is that you should either do nothing and wait for it to go up or you could buy even more after it crashes to drop your average purchase price and then make a profit.

Long story short the best way to make profit is to never sell when you are in a loss. This doesn't work in horrible coins of course, if you are holding a horrible coin then you can sell, but if we are talking about something like bitcoin they always hold until you profit, it will eventually go up there.

That will happen many times and if we are not ready for that situation, we will not survive in the bad situation instead will leave the crypto because of disappointed with the situation. When the crash comes, we need to calm down and be patient and try to use the moment to buy more.

We need to have a strong hand to hold the coin, especially in a crash situation but that will depend on the coin itself. If the coin is worth holding, then that will be okay to still hold in the crash market.

Has anyone had experience with trading NFT games? I mean pre-sales, public sales, and then re-buying at public sales? I have seen many videos on YouTube where they do this type of practice, where with only 1 BNB that is in 500USD they can multiply it sometimes to 2000usd or more, of course knowing how to do the type of trading, but it is a trading that I think is fast, that has its great risks, but that gives high profitability.

[wajik-tempe]

Has anyone had experience with trading NFT games? I mean pre-sales, public sales, and then re-buying at public sales? I have seen many videos on YouTube where they do this type of practice, where with only 1 BNB that is in 500USD they can multiply it sometimes to 2000usd or more, of course knowing how to do the type of trading, but it is a trading that I think is fast, that has its great risks, but that gives high profitability.

New project usually experienced a price changes really fast because the volume is still low, it's just like the projects finding it's real value before volume going up. Many people doing scalping to the new project to multiple their capital but it's very risky. If the timing is not perfect, we could also loss 50% in a minute. Not worth it if wen are just speculating without knowing what project we are in, and it won't make you profit all the time, there will be the time you will get high loss.

[Mauser]

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.

Aren't you also getting a coin in the future trading? But instead of getting it today you will get it at a future point in time. If prices drop then you make a loss because you could buy the coin cheaper at the spot market instead of from the future contract. For me holding a losing coin is not a bad idea. If you don't need the money right away and don't have a better alternative to invest in, why not just hold the coin for a few month. I can understand day traders who want to minimise their risk and will sell a coin as soon as it starts to turn into a loss. I made good returns with HODL.

[Betaj00]

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

I think not need to use Spot and Future trading before understanding about trading that which one is the best for his, it maybe bad for him, becouse if he use both trading without any knowledge then he can lost his fund. So he can watch video and others people’s opinion and also he can use demo trading.             

[Desmong]

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.

Affirming that spot trading is a better option for newbies might sound easy to them but to me, any trader can decide to trade spot market in respective of your status in the cryptocurrency market. Spot trading is just like normal buying and selling we usually do when we buy a coin and later sell it to other investors and make our gain.

Spot trading might look easy and comprehensive but also have it own risk which can be minimal per say. Let the newbies know that there are certain risks attached to all forms of trading.

[tygeade]

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

I think not need to use Spot and Future trading before understanding about trading that which one is the best for his, it maybe bad for him, becouse if he use both trading without any knowledge then he can lost his fund. So he can watch video and others people’s opinion and also he can use demo trading.             

In my opinion, if you are good at futures trading then you can easily tackle the spot trading because futures environment is known for high volatility whereas spot markets are always known for highly technical analysis obedient which means you can make use of technical and fundamental analysis more effectively with sport trading.

So, to find which type of trading is good for a beginner, I guess not needed to check on both the environment just checking with futures alone will be enough and fortunately we are having demo trading facility for futures trading these days.

[martina14]

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.

I had been here in cryptocurrency business for a couple of years and yet, I never try to use Future and Margin trading.
Most of the time I used spot trading and I don't see any problem if I stick unto it. And according to what I read, watch in youtube and
heard for some rumors, Future and Margin is much more higher risk rather than Spot trading and I think it is right, actually.