Basic Types of Trading

[RealMalatesta]

I use the leverage provided by the Amarket broker in the amount of 1: 1000, and I can say that it really helped me out and helped me a lot.

Yeah, only newbies will share like this and I am sure no reputed forum member will have positive opinion on leveraged trading for sure. Perhaps you might be a paid shilling of above mentioned broker. I am seeing people do suffer a lot when availing 1:5 leverage itself but you are shilling about 1:1000; definitely zero chances to be realistic.

Leverage on the other hand, could be utilized in our favor if we are too good in technical analysis but considering against the market volatility

Being too good in TA may not be possible for 90% of traders as real time TA results are almost 50-50% profit/loss ratio and taking it toward 80-20% is purely based on how inattentively we go for TA. Hence, leverage trading cannot be utilized at most cases.

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[bitgolden]

During spot trading you need to be less careful because if you do something wrong and end up losing money then you could wait and then you could still profit. Let's assume that you bought bitcoin at 50k and then it dropped to 30k and you lost money there, but if you could wait and not get out then you are going to be making profit now, and that's how you do in spot trading.

You buy something and hope that you would profit quickly, like making a profit during the 30 seconds you buy and that's the dream, but if you ever buy something that end up dropping in price then you at least have the chance that you could get out later than you expected and you would still be fine. That is why spot trading is a bigger market than any other market.

[nelson4lov]

During spot trading you need to be less careful because if you do something wrong and end up losing money then you could wait and then you could still profit. Let's assume that you bought bitcoin at 50k and then it dropped to 30k and you lost money there, but if you could wait and not get out then you are going to be making profit now, and that's how you do in spot trading.

You buy something and hope that you would profit quickly, like making a profit during the 30 seconds you buy and that's the dream, but if you ever buy something that end up dropping in price then you at least have the chance that you could get out later than you expected and you would still be fine. That is why spot trading is a bigger market than any other market.

A large majority of crypto traders focus on spot trading even though they also trade on futures. Spot is the backbone of any trading especially in crypto. Its the place almost all beginners start from (I did so too) and even though I still use margin and trade futures, I always have a couple of spot positions that I just keep open for as long as I want.

Only downside is the lower profitability since 1% on either side of the market will always = 1%.

[Silberman]

I use the leverage provided by the Amarket broker in the amount of 1: 1000, and I can say that it really helped me out and helped me a lot.

And how long you have been trading with that insane amount of leverage? Because I can guarantee you that there is no trader in any market that can trade using that kind of leverage for more than a year, you are compounding the volatility of this market 1000x and when we take into account the volatility is already very high in the market then even the most insignificant dip can be more than enough to completely wipe out your account, however if you have to learn the hard way be my guest as it will not take a long time before you destroy your account by using such a  high leverage.

[Blawpaw]

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.

They are more or less the same, but you forgot to say that Futures is a lot riskier. With margin trade, you can easily strand small price reversals whereas with futures you get immediately capitulated

[tbterryboy]

only newbies will share like this and I am sure no reputed forum member will have positive opinion on leveraged trading for sure.

Yes, that forum member looks like a paid shill as they are talking about a broker in many topics as far as I have come across. So, basically if someone is talking about leveraged trading positively then that must be a fake one in most cases.

Leverage on the other hand, could be utilized in our favor if we are too good in technical analysis

Being too good in predicting market direction with the help of technical analysis is not easier for most traders. When most traders are failing with their technical analysis part then obviously they must avoid leveraged trading to protect their capital. I had experience of going for leveraged trading but in the end I understood that spot trading is profitable even with smaller ones.

[bct-user]

📌 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

Actually, there are some other types of trading as some members here given information, right?
But for me, I only focus on Spot trading. Why? because I am not really good at analyzing the chart or doing technical analysis. I have tried doing trading in the future market, but I really couldn't and I will not risk my money more in the future market.
That is why I choose Spot trading because it is less risky than future

[nhaila]

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.

Actually the two major trading systems in Binance spot and margin but another trading system that you find in Binance exchange platform that's p2p trading. One can easily transfer or trade with local supporting currencies.

[breathlessz]

📌 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

Actually, there are some other types of trading as some members here given information, right?
But for me, I only focus on Spot trading. Why? because I am not really good at analyzing the chart or doing technical analysis. I have tried doing trading in the future market, but I really couldn't and I will not risk my money more in the future market.
That is why I choose Spot trading because it is less risky than future

it's easier for spot trading, I've experienced it myself, because we just buy a potential coin and then hold it until we get a draw and we exit the market. I think many people prefer it, especially in cryptocurrencies that have this high fluctuation

[clorasteinberg]

Only experienced traders should invest in futures trading. Futures work on the principle of derivatives,  making it more profitable and more risky. Spot trading is instant and best for beginners. 

[henmark]

Actually, there are some other types of trading as some members here given information, right?
But for me, I only focus on Spot trading. Why? because I am not really good at analyzing the chart or doing technical analysis. I have tried doing trading in the future market, but I really couldn't and I will not risk my money more in the future market.
That is why I choose Spot trading because it is less risky than future

You do not even have to be that "smart" to be trading on spot trading which is why I love it as well. I mean you need to be smart and be good at math and all that if you are doing chart reading and trading constantly, but if you are not doing that, if you are only caring about the situation like "I buy it now, then I will be able to wait as long as I have to whenever there is a good increase" then you do not need much.

I have been doing it for years and I really need nothing to do that, I just do nothing when it drops (maybe buy some more) and then sell it when I am in profit, which I do not even sell for most cases, just ones that I want to get out. This is why I believe it is really great for people who do not want to deal with all of the hard work other trading methods bring in.

[kvok1]

Actually, there are some other types of trading as some members here given information, right?
But for me, I only focus on Spot trading. Why? because I am not really good at analyzing the chart or doing technical analysis. I have tried doing trading in the future market, but I really couldn't and I will not risk my money more in the future market.
That is why I choose Spot trading because it is less risky than future

You do not even have to be that "smart" to be trading on spot trading which is why I love it as well. I mean you need to be smart and be good at math and all that if you are doing chart reading and trading constantly, but if you are not doing that, if you are only caring about the situation like "I buy it now, then I will be able to wait as long as I have to whenever there is a good increase" then you do not need much.

I have been doing it for years and I really need nothing to do that, I just do nothing when it drops (maybe buy some more) and then sell it when I am in profit, which I do not even sell for most cases, just ones that I want to get out. This is why I believe it is really great for people who do not want to deal with all of the hard work other trading methods bring in.

nice comment , how often do you buy /sell do you have algo for it ?
When do you sell I mean after 5 % - 10 %  gain ?

[Silberman]

Leverage on the other hand, could be utilized in our favor if we are too good in technical analysis

Being too good in predicting market direction with the help of technical analysis is not easier for most traders. When most traders are failing with their technical analysis part then obviously they must avoid leveraged trading to protect their capital. I had experience of going for leveraged trading but in the end I understood that spot trading is profitable even with smaller ones.

Which is why it is stated over and over again in most honest books about trading that leverage trading is something that should be engaged only by the experts, a newbie or even a good trader do not have the necessary tools to be able to manage their leverage correctly, you need a lot of experience, a system that is highly accurate and a trader that can act on the blink of an eye to save their account if they notice there is something wrong going on.

[FanEagle]

leverage trading is something that should be engaged only by the experts, a newbie or even a good trader do not have the necessary tools to be able to manage their leverage correctly

In my opinion almost all kind of active tradings are not suitable for 99% of people (and 1% belongs to pro traders) as those necessary tools and knowledge is not sufficient with them. Against ever-changing market fluctuations, we must need to keep updating our tools and knowledge to stay secured in trading which is not an easier task hence most traders ending in losses.

So, which type of trading will be definitely profitable: holding or long term trading.

I regularly suggest everyone to go for long term trading so that we could easily beat market fluctuations.

There could be at least 10 different types of trading methods are available and a trader does not need to master all of them but must adopt a method which is profitable for them; this way long term trading will be profitable for almost all the 100% of traders.

[AakZaki]

And how long you have been trading with that insane amount of leverage? Because I can guarantee you that there is no trader in any market that can trade using that kind of leverage for more than a year, you are compounding the volatility of this market 1000x and when we take into account the volatility is already very high in the market then even the most insignificant dip can be more than enough to completely wipe out your account, however if you have to learn the hard way be my guest as it will not take a long time before you destroy your account by using such a  high leverage.

The use of high leverage must also be balanced with clear knowledge, don't just use high leverage but don't know how to do analysis. must be very wise in using leverage. Futures trading is a very dangerous trade when compared to spot trading. High leverage will provide high profits if the analysis is correct, but if it is wrong to predict and is beyond a guess, then big losses will occur. must always be wise in determining leverage.

[Cling18]

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 the 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.

Both have tasks especially for newbies but I find futures riskier especially if you aren't well informed about the capability of your coin. Holding would be better for beginners so they would know how to deal with the changes in the market and they could switch to futures when they completely know how to apply at least the basic strategies of trading.

[Ems.]

Basics type of trading,scalping trading ,day trading,momentum trading,swing trading and position trading.Most important is can manage and focusing one trading.This are the methodes can you manage to  those activities and operation of trading to take care every tasks and hold the company

[fullhdpixel]

Basics type of trading,scalping trading ,day trading,momentum trading,swing trading and position trading.Most important is can manage and focusing one trading.

These different methods of trading are classified according to time required for closing one trade or by the strategy we are using to predict the direction of market. Honestly not all the traders need to know about all these things but they should adopt one trading method based on their capital amount and level of knowledge in technical analysis.

I am just into position trading because I'm not having enough time to watch market all the times. With the help of position trading we can leave off market screens at whenever we need to, which is not at all possible in day trading and especially while scalping.

[SquallLeonhart]

The use of high leverage must also be balanced with clear knowledge, don't just use high leverage but don't know how to do analysis. must be very wise in using leverage. Futures trading is a very dangerous trade when compared to spot trading. High leverage will provide high profits if the analysis is correct, but if it is wrong to predict and is beyond a guess, then big losses will occur. must always be wise in determining leverage.

Leverage is the highest form of trading that has the highest level of risk/reward ratio. You may lose all of your money or you may make more money than you can imagine. This means that you can't make too many mistakes, even the slightest mistake will cause you to lose all of your entry. Margin of error being so small causes everyone to either be very very good at trading if they are making a profit with leverage, or they end up with nothing at all, literally zero money left.

I tested way back years ago on bitmex demo and I have realized that I am no way near that level of a trader, I rather keep on being a long term investor and occasional trader. This way I know my level, and I know how good I can become, and I make a profit, sure not good enough like a 100x leverage bull run type of income, but it is an income nevertheless so I am happy with it.

[Hobo66]

Actually spot trading means that do trading instantly. While future trading is somewhat prolong. I think that spot market is little bit full of hazards. If you are not familiar with trading and are new in trading then you should give preference to future trading. There is less chance of losing money.  people often choose future trading and they think that there will be more profit in the future.