Why Beginners Should Not Go For Future Trading?

[shinratensei_]

spot trading always more friendly if compared with future trading, too much risk leveraging your assets you could always gain massive profit but at the end you could always lose it in a blink of eyes once market doing something strange, at least with spot you'd still hold your coin and wait maybe next week seeing whether the market changing the tides, but you can't with futures unless you stop loss, I think if your skill in analysis isn't sufficient, trying futures trading are like gambling and you should be ready to lose all your money, overall the traditional conventional spot trading still best one from my 2 cents, but of course it might took long time for gaining profit than future.

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[bettercrypto]

If spot trading is confusing for newbies, how much more so in Future trading, which is the opposite of Spot trading.

       Because you can't be ignorant of trading here in cryptocurrency, you need to know how to read a chart, besides that, you must also know how to use tools so that you can get profit here in this kind of income in the crypto space.

[xzy887]

You will not find anyone in the market as new traders. Because those who are real traders first of all gain a lot of experience and then come to trade. Would you now say that all traders are experienced? I would say not at all. Because here also some new traders come and go constantly. They rush into trading and without understanding anything about the market they trade upside down and lose all their money and they also get lost from trading. And for them both futures/spot trades are risky.

[borovichok]

If spot trading is confusing for newbies, how much more so in Future trading, which is the opposite of Spot trading.

       Because you can't be ignorant of trading here in cryptocurrency, you need to know how to read a chart, besides that, you must also know how to use tools so that you can get profit here in this kind of income in the crypto space.

There are two different ways to trade cryptocurrencies: spot and future. It's crucial for traders to fully comprehend the entire trading system's operation and to seize every opportunity to use a trading strategy they come across. While future trading is regarded as the crude oil for making money in the market, it is complex and difficult to understand for newcomers who skip the proper pathway of studying the market. Spot trading is easy to learn and understand for beginners who are quick to pick up knowledge. In order to avoid further damage in the future or during a trade, a beginner cannot skip over the fundamentals and technicals of cryptocurrencies. Before initiating a deal, a novice should be aware of several important factors..

[Cryptmuster]

If they do mistake in futures there's no going back since if their money got liquidated they don't have a chance to get it back again by using the same money they put on exchange. Much better if they stick on spot trading for a while and learn from the movement of the market, after they got confident on their skills maybe they could start to try and risk to enter on futures trading.

If we are talking about beginners, then let it be only spot trading, and if after some time, the results are still satisfactory, then it might be worth trying your hand at futures trading. But even though I do not consider myself a beginner in trading, I still use only spot trading for myself. I would like to clarify that trading for me is not my main activity and it is mainly medium or long-term trading.

[ethereumhunter]

If spot trading is confusing for newbies, how much more so in Future trading, which is the opposite of Spot trading.

       Because you can't be ignorant of trading here in cryptocurrency, you need to know how to read a chart, besides that, you must also know how to use tools so that you can get profit here in this kind of income in the crypto space.

That's why beginners don't need to trade and force themselves to try trading. They can learn to use a demo account first to get used to all the indicator tools until they understand how. It can also provide a trading experience useful in real trading later.

And always learning to trade is necessary for people who want to trade because that can help them make a profit. Or if he doesn't have time to study, he can try just to invest. It would be better for him to avoid losses.

[Dragonfund]

If I have huge amount of capital, I will never try future trading. Generally, I think people who go into future trading are inpatients and are opportunities who always want to make big profits regardless of the volatility, they wabr something big even with small capital, they want to eat their cake and still have it and the truth is future is one of the riskiest investment any person would want to induldge in, it is possible to be lucky but the probability of making it out of future trading is very low, I will always advice people to do spot instead and with patience, you can make something out from it.

[Dr.Bitcoin_Strange]

Futures trading is indeed profitable, but a crypto beginner should not venture into it in a hurry. I have lost money before in futures trading, but I have not done so since then.

Unless a newbie is practising regularly with demo, as you mentioned, he or she should not hastily start future trading. Few CEX I used don't have demo accounts, but on radar they only sometimes give trial funds to practice futures trading. If you utilize the trial funds and make a profit, then the profit is yours.

[Dimitri94]

Learning to trade is important for those who are new to the world of trading. It is not right to join advanced level trading as a beginner. Almost everyone has a basic knowledge of futures trading. Where the possibility of liquidation is high. Therefore, instead of going in that direction, We should learn general trading as the beginner. If one has enough money of his own then he can involve futures trading by acquitting enough knowledge.

[@sriyan]

Beginners Thought : Almost every Beginners think Future Trading is much profitable than Spot trading. I am also agree with you but Future Trading isn't for all. In future trading we usually used to use high leverage which cause high risk of being liquidated. We usually used to see people are making huge profits from Future Trading. But they are not like us.They are much Experienced and have well management of their portfolio. Youtubers and experienced traders usually trade with high leverage and they also do deep technical Analysis to open any position.

So What Should I Do As A Beginner? : I think Beginners every traders need to have experience of trading. And also must have knowledge about technical analysis. You guys can use TradingView to analysis by own and also can see others analysis about the market or about any specific token or trading pair. I will advise you to do Spot trading because there you have a little risk to lose your funds but in future trading you can be liquidated in a short time and can be frustrated. When You see market is in bull season you may buy some 3× or 5× Leveraged Tokens that will give you high returns. Though almost every trade you open there must have a perfect technical analysis and trading strategies. You can still now use future trading but my suggestion will be never use high leverage at all unless you are fully confident about the market.

Edit: Trading beginners can practice future trading with Demo funds. There are some exchange available where you can trade with demo assets. That will help you to build a good experience in future trading.

Also Experts are welcome to advise new users about Best trading Strategies.

Beginners are putting big money into future trading to get higher profits. But they don't have a proper risk and reward management plan. End of the day they will lose their money.  My suggestion is to start as an investor and analyze the market cycle. After a few years, they can start future trading. Also, to have a better understanding, they can use paper trading.

[Mpamaegbu]

Beginners Thought : Almost every Beginners think Future Trading is much profitable than Spot trading.

But of course, that's a fact. Anyway, that's if one gets the set skills for it right before venturing into it. Anyone who is conversant with Forex Trading won't find Futures difficult, even if they're noobs in crypto trading. In comparison, Futures is on the speed lane while Spot is on the service lane. That's the way I tend to look at it. Even if one uses a very low leverage in Futures, one can still lose it all. That's not the case with Spot trading. One's coins stay the same when traded in Spot, only losing value which can be regained later. It's not that way with Futures.

[palle11]

We should learn general trading as the beginner. If one has enough money of his own then he can involve futures trading by acquitting enough knowledge.

Having enough money is not a guarantee of making good trades or profit nor sustaining your account in futures trading because you will eventually lose it all if you don't have the right mindset and emotional balance required. This is true about trading. Having the right strategy and applying stop loss will guide a trader to do better than throwing in everything in pursuit of profit. We have to reduce our action for profit and channel it to gradual accumulation of profit.

[OpenCEX]

3 major mistakes to avoid when trading cryptocurrency futures markets:

• Derivatives contracts differ from spot trading in pricing and trading
• Discounted futures sometimes come with surprises
• Higher fees and price decoupling should be considered

[crzy]

3 major mistakes to avoid when trading cryptocurrency futures markets:

• Derivatives contracts differ from spot trading in pricing and trading
• Discounted futures sometimes come with surprises
• Higher fees and price decoupling should be considered

Beginners have to be mindful when they try this futures, trading can be more risky if you decided to be more greedy. You should not rush your profit in trading, just take the process and learn accordingly. Though mistakes are pretty normal, I just don’t like the idea of doing your trades even if you are still not capable to do so and you just made your decision because of someone’s advices. If you want to succeed in trading, you should be able to learn everything at the right time.

[irhact]

If we are talking about beginners, then let it be only spot trading, and if after some time, the results are still satisfactory, then it might be worth trying your hand at futures trading. But even though I do not consider myself a beginner in trading, I still use only spot trading for myself. I would like to clarify that trading for me is not my main activity and it is mainly medium or long-term trading.

The Time duration before anyone should switched from spot trading to future trading should or has to be that trader having years of experience in spot in trading. From you statement it's looking like if someone has couple good months in trading then they can switch but that shouldn't be recommended as they will lose all their capital if they do such.

From my little knowledge, I would advise any trader just starting that they should trade for one full Bitcoin cycle before trying other trading experience. If you're comfortable trading Bitcoin during the bull market and also the bear market and you are making profits then you can trade any type of trading form spot to future trading etc.

[MusaMohamed]

Futures trading is indeed profitable, but a crypto beginner should not venture into it in a hurry. I have lost money before in futures trading, but I have not done so since then.

Have you get profit from futures trading?

I don't request you to show proof of your Futures trading profit because it is your personal information and privacy, I respect it. If did not get profit from Futures trading, please don't say it is a type of profitable trading.

It is one of most risky trading types and should avoid by newbies and all traders.

Unless a newbie is practising regularly with demo, as you mentioned, he or she should not hastily start future trading. Few CEX I used don't have demo accounts, but on radar they only sometimes give trial funds to practice futures trading. If you utilize the trial funds and make a profit, then the profit is yours.

Trading with demo and real account are very different. You can not succeed in real account trading just because your demo trading stats look good.

Trading with small capital is easily as it contains very little pressure. If I trade with $100 and lose it, I won't lose my life.
Trading with big capital or bet all my asset, my life in trading is very high pressure and stressful. If I sold my house, use all money to trade and lose with my trades, I will lose my life.

Emotional impact would be small with small capital and would be big with big capital.

[GreenStox]

but if you want to master it you really have to learn about it, but with very little capital to see how far we can grow.
I've seen some of my friends do that, they say it's very easy for you to get money and also lose money.

[gaston castano]

but if you want to master it you really have to learn about it, but with very little capital to see how far we can grow.
I've seen some of my friends do that, they say it's very easy for you to get money and also lose money.

i think its too risky if you just learn future trading more than spot trading, future can make your money lose (liquidated).
in spot you will got liquidated, but your coin value will decrease when the market fall.
so i recommended to learn in spot trade first.

[tjtonmoy]

Have you get profit from futures trading?

I don't request you to show proof of your Futures trading profit because it is your personal information and privacy, I respect it. If did not get profit from Futures trading, please don't say it is a type of profitable trading.

It is one of most risky trading types and should avoid by newbies and all traders.

I can't say that you are right. It's a high risk, high gain strategy. If no one is making profits from future tradings, they who are doing it? And for what?
If you are a professional and know how the market movements works, then future trading is for you. Otherwise, you are better off doing spot or DCA. And also, you need deeper knowledge while doing spot trades too. Nothing is possible without proper knowledge. TA is the best way to gain knowledge I guess. And learning it should be the second priority. First should be gaining control over your emotions.

[Ziskinberg]

For some reason;
 - high-risk
 - lack of experience

Generally, Future trading is not suitable for them. Of course, they can do Future trading but it was best if they will do the spot trading first prior to this. We consider the thing called preparation and it was to know that spot trading is a good place to learn and gain experience. It was not really we have to stop someone if they wanted to jump Future Trading directly because as we know spot trading could also give us losses but must know the consequences of taking too risky trades if we don't have enough knowledge about it.