Spot Trading vs Futures Trading

[david678345]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

[1714491577]

1714491577

[1714491577]

1714491577

[Oshosondy]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

The best are bitcoin and other well known coins. Be careful with altcoins. Gamble with altcoins. Hold bitcoin.

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

You can use site like Coingecko to look for their marketcap. The higher the marketcap the better. But know that altcoins are more manipulated, especially the low cap coins.

For future trading, know that it is riskier. Very dangerous. Learn and only use small amount of money to know about how dangerous it can be.

[spiker777]

what are the advantages of trading in spot?

You won't get easily liquidated and lose all your capital in no time at all. So if you aren't an experienced trader, stay in the spot market and don't go towards futures because that is mostly a death trap for newbies, mostly.

I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

One tip: Don't trade every coin or token that you see in the spot market no matter how volatile they are making you feel like you can make a quick entry and a quick exit with some profit because that isn't going to happen and you will most likely be a victim of FOMO.

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

I'm not much of an expert, but I can suggest you to stay away from new cryptocurrencies if you are not yet able to analyze projects to understand if they have enough potential for growth or not.

[electronicash]

the advantage of spot is that if you buy 1BTC and the price of BTC dives to $45k, your BTC will still be 1BTC.  that's the advantage of spot.

if you are looking to avoid coins based on liquidity then you may not be able to remove any variables for you will avoid them all. i think what you would want to know is which one is best to invest in and trade. look into the support and resistance in the chart and verify it on the order book because it's where the prices fluctuate.

[jossiel]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

The good thing about trading in spot is that you won't be timed by the market. And that's what spiker said about not being liquidated quickly.

Because in futures, you'll get no warning when you're about to get liquidated or if you do, it's all done and gone. But no one can stop you from doing futures.

If you think that you're good enough and you can gamble with it then try it. Just remember the tips that movements there are quicker and more pressing.

[Faisal2202]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Do you know what spoofing is? Because it does not relate to the context of your question, if you are afraid to trade in a coin that you think has lower liquidity then just confirm how much liquidity this token has, you can check it on Coinmarketcap, Coingecko, and their are plenty of other tools to confirm that, if the token is totally new and you don't see it on any of the tools then you can check their smart contract by manual way.

Like on the explorer, and the title of the post is so confusing in comparison to the post content, Well, it totally depends on you to confirm because liquidity in one's view might be enough but in your view, it might not be, so DYOR before trading either in future or spot, in current time, you should not worry about liquidity that much, all you need is proper knowledge of how to check them.

[Adbitco]

Spot trading is less risky than future trading where you will quickly swipe off your account that is why most people like trading on spot. In future trading you can empty your account if you aren't careful enough that is why most people love using spot trading, and again trading coin that reliable is much more better than trading newly list coin sometimes their volatility is uncontrollable where you could lose capital in just a very limited space of time. The best is to just look out for a better coin like btc and hodl for longer time than involving yourself with future trading.

[Rengga Jati]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

When you are doing trade on the spot market, if within a certain time the price of the coin suddenly falls, it doesn't mean that you immediately lose your assets. It's just that the value has decreased. As long as you are still holding the coin, the amount will remain the same, if you continue holding and one day the coin rises again, then its value will follow the real rate on the market. So, don't panic easily when the value of your assets suddenly decreases when prices are dropping. Because, as long as the coins you take still have volume and are not delisted in the exchange, then your assets are still safe, you just have to wait for the coins to rise again.

However, this is quite tricky, because sometimes there are coins that when they go down, they will go down continuously and in the end they can no longer rise again. So over time, your assets will actually have little value and even if they are delisted from the exchange, it means your investment has failed.

For this reason, avoid various coins that are hyped, or in this case the coins that have skyrocketed hundreds or even thousands of percent on the exchange, because this will be quite risky if you buy them.

Choose only the top coins by diversifying, not going all in on 1 coin. I agree with some of the members here, use Coin Market Cap or CoinGecko to check top coins. The main thing remains in Bitcoin, so choose Bitcoin for a relatively large percentage of assets.

Oh yeah, apart from choosing which coins are recommended, you also have to make sure that the exchange you use is a top exchange, don't use new exchanges or small exchanges whose reputation is still questionable.

Regarding future trading, for beginners, it is not recommended. Because, if you have placed a position in the future market without doing research first, then the risk of actually losing your money will be really big. Because in future trading there is a leverage system, which will also have a negative impact on your future trading results if the market changes drastically from what you placed. And this means big losses for you.

[Assface16678]

Well, I would prefer spot trading to futures, as futures trading is a very risky form of trading, as you will have what they call leverage in futures so that you could trade an amount of 1 BTC without even having the price to buy it, but of course the risk will be greater; more leverage means more risk, and it could easily wipe out your funds in your account. So if you are not an experienced trader, better settle for spot trading, as you could also hold your coins there. You can only buy coins depending on your funds in spot trading, and you have a bigger chance of earning in spot trading. I don't disregard future trading, as you could earn a lot in futures if done correctly or if you get lucky. In terms of coins, it is better to settle for known coins than new coins because new coins mean a high risk, but of course, if you invest in a new coin and it grows, then it is lucky for you.

[GreatArkansas]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

For me, trading in the spot market is cheaper fees than the futures market and less risk because in spot trading you only buy, no leverage, you can't short the market like the futures market.
About coins to avoid, I highly suggest trading pairs that have a high market cap or trading volume, so Bitcoin and Ethereum are the best pairs for this.

[wxa7115]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Futures trading is many times more dangerous if you are not ready for it, and for your post I can tell that you are not, so you need to avoid it or you risk getting liquidated if the market makes a movement against your prediction.

Spot trading, while still risky offers you way better chances to profit from your preferred assets, obviously you have no way to know this will be the case for sure, but at least you will have some chances to succeed, unlike with what it may happen with futures trading.

[Yamane_Keto]

Popular platforms often have higher liquidity volumes that vary depending on exchange, but by using an order such as limit order for sale instead of market order, I do not think that you will encounter problems with liquidity, even if it is low, but the execution of orders will be slow.

Trading altcoin contains many risks that are not related to liquidity, but rather to the difficulty of predicting the direction of the market. The lower the market value, the more difficult it is to predict and the less liquidity. Therefore, use limit order and set the selling price close to the available prices or slightly higher than them in order to be executed quickly.

There is a converter command that you can use if you want a simple exchange.

[adaseb]

When you buy spot, you actually own the coin or token, and you can withdraw it. You also don’t pay any fees to hold it except for the buying fees at the beginning.

Futures is more for day traders. You don’t actually own any coins, it’s just a derivative of that. You also need to pay a funding fee usually every 8 hours. But the advantage is that you can leverage your money and with $1000 capital you can buy up to $100,000 worth of crypto. So if you pick the correct direction then you can make 100x more profit but on spot you are capped at 1x.

For beginnings you should stick with spot trading however.

[leonair]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

You can think of spot trading like a stock business where you only buy and hold a coin and sell it at a profit. And you can sell instantly for profit or loss if you want. And futures trading is a type of loan trading. You can leverage up to 20x the amount you have for Altcoins and 125x for Bitcoin.  But it is very risky.  You can think of future trading as risky as gambling. so it is better not to do future trading if you are not able to take high risk

[Monarch B]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

What are the advantages of trading in spot?
Answer: Here you can hold your token for a long time. There is no chance of liquidation here. Yes of course your token price may go down but don't lose power by getting liquidated.

It is not like futures trading. In futures trading you can be very profitable very quickly and all your money can be spent very quickly. You can always use stop loss in futures trading. It will reduce your losses. The risk in sport trading is very low, in that case, entering into future trading is very high.

I think if you have a budget above 1000 dollars then it is possible to earn $30 to $40 daily by doing Spot training.

[armanda90]

Actually both kinds of trading between spot and future have difference advantage each other but depend on your knowledge, research and analyze before trading in two kinds of platform. For spot standings your fund keep secure until how many years hold it during price dump or pump but difference with future trading, when wrong position opening such as your open short position but price of coins drastically pump you must ready with liquidation and losses all your capital.

But have advantage with future trading without waiting market have going up but also you can earn profitable when market going dump by short position opening. Small fund in future trading possibilities earn profitable in short term more than hundred percent when using maximum leverage, difficult to earn above 100% profitable with spot trading in short term and has small capital.

[crwth]

I think it would depend on your exchange because if the liquidity of a coin in that exchange is non-existent, then it's probably because of the exchange's lack of volume. You should stick to big exchanges so you won't have a problem with low-volume coins.

Spot would be best if you are less risky but want to earn money in terms of buying low and selling high.

For me, when picking a trading pair, I mostly depend on what strategy I'm going to use to trade. Like for me, the trading strategy that I have is for the long term and automated. I pick the coins that I am OKAY to HODL. Even if I buy more of the asset and lose in value, it's okay because I'm in it for the long term.

If you are going FUTURES, it's best to find the most traded one, the largest volume, so you would be sure to have the receiver of your trades but it's really risky, so be careful.

[YOSHIE]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

The profits are the same as when you buy and sell, Spot trading can make profits instantly, you can make profits in a matter of days, To be honest, I personally enjoy doing this with crypto types like Bitcoin and Ethereum, nothing else, even though there are many types of coins available.

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Of course, in spot trading you need to understand and be familiar with the market and the type of crypto you want to trade. As long as I do spot trading, I never use coins other than Bitcoin and Ethereum, these two types of coins are no longer in doubt for me.

[Hamza2424]

First of all, I want to mention one most important points I want to mention here is OP that trading is not for everyone, people mostly think that it's not a big deal they'll learn it and they can afford it as a primary skill. Becasue there's an emotion called patience which is not common in the common people and that why I've made this conclusion on trading for everyone.

In future and spot trading there's a major difference and even for an experienced trader I would always recommend trading in the spot market. For newbies future trading is a nemesis because the newbies will earn from 10 winning trades, and lose in a single trade. I wont say just make trades in the Bitcoin and ETH you are free to take risk in others as well but be very careful while trading in the FUture becasue Bitcoin cant offer reliability in the future market.

[yudi09]

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Spot trading is easier to implement than futures trading. Future trading is done without using assets directly[1]. To find out which coins should be chosen and avoided, I tried to mention coins such as Bitcoin and several altcoins which are still in the 10 to 20 market cap lists that you can use on several sites to see market capitalization.

In my opinion, spot trading is not meant to be ordered for a long time. Set the selling price at a price that is not too large a percentage increase in price from when you bought.

[1]. coinvestasi.com