Spot Trading vs Futures Trading

[moneystery]

the advantage of spot trading is that you can trade without having to worry about margin calls and you can buy or sell whenever you want. meanwhile, if you trade in futures, it is quite risky if you don't place a stop loss or if the price falls significantly it could make you make a margin call and lose all your money.

so for those who want to profit quickly but with lower capital, they can choose futures trading. but for safer trading, spot can be the best choice.

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[UmerIdrees]

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...

You have asked too many questions each with a different perspective. To answer your question of the difference between the Spot and the future trading is liquidations. In spot, there is no liquidation as you are only in loss if you sell in the loss. In spot trade, even if the coins move against you, and dump, you can still hold and only sell once the price goes above your buying price. This is not possible in future trade because if the market moves against your positions, you can face liquidation meaning your trade can end up in a total loss

Also, in future trade, you can trade both sides of the market but in the spot you can only have the long side. You cannot short the market for profits.

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

Well, it is always recommended to invest in bitcoin and if you want to trade altcoins, you better trade in the top 20 market cap coins. The more volume the coins have, the better it will be and less chances of scam/ rugpull or manipulation.

[tvplus006]

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 biggest disadvantage of spot trading is that you cannot actively trade when the market turns bearish. This type of trading is available only for margin trading. But if you are new to trading, then you should not rush to this type of trading, first gain experience in spot trading.

[MusaMohamed]

The biggest disadvantage of spot trading is that you cannot actively trade when the market turns bearish. This type of trading is available only for margin trading. But if you are new to trading, then you should not rush to this type of trading, first gain experience in spot trading.

With Leverage and Futures trading, people can trade two sides. With Spot Trading, they only can buy and wait for higher price to sell and get profit. With Leverage and Futures Tradings, they can short when the market is bearish and wait for lower price to close their position, and take profit.

People after touching Leverage and Futures Tradings will be addicted with these types and they will become more actively trading. Consequently and unfortunately, most of them will lose money because no traders can predict the market trend correctly. I am keen on Spot Trading if I want to trade, not hold. I lost a lot of money by Leverage Trading and stopped doing this long time ago.

[bettercrypto]

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?

In spot because what is happening there is actual time trading happening there, so you can get profit there. Whereas in futures, it is the opposite, and besides that, it is not recommended to conduct a futures trade for a newbie in crypto trading.

Unlike spot trading, newbies can trade immediately; for example, if they sell, they will immediately get it in their balances; unlike futures, they cannot. In addition, in a spot, even a small capital amount is possible; unlike futures, they have a minimum amount. Those are the things that are different between them.

[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?

It has been discussed several times before that in spot trading you have to do it only with your own money but in future trading you can trade using leverage and you can increase your money several times. however, there are high risks as well as advantages in this case.

Spot = Buy token with own capital only and sell them for profit
Future = Use leverage to increase your capital and take the advantage of quick profit & loss

[gabbie2010]

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 lessrisky and majority of the cryptos are listed on that section all you needed to do is to make research so as to pick few potential coins with future prospect and invest in it or them possibly adopting DCA buying bit by bit even as it price drops, however future trading is a different ball game meant for experience and knowledge trader because it carries a huge risk and it's a leverage trading thus account can get liquidated in a jiffy if a trade goes wrong though setting a Stop Loss would reduce the risk, future trading can also be day traded, though despite the high risk profit earned is also huge and massive depending on risk taken, however as a newbie it's better to start with spot trading.

[dunfida]

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?

If you are just that still a noob in trading then make yourself mastered in Spot trading would be the best choice or path to take. Why? There's no chance on getting liquidated. If ever you would really be that in negative
then you could really just always opt in to hold until you would be breakeven which it is really that unlike with futures that once that you do hit up that liquidation price then its over. There's no way that you could take it back rather than on making those profitable trades. Higher leverage the higher risks that you would really be needing to face.

Coins to avoid? Always stick to those main coins that we do have in the market. Manipulation? There's no such thing as safe on this world 
This is survival of the fittest of course on which making use of different TA"s plus with those fundamentals then it would be something that will
really be that advantage compared to those who have none.

[kentrolla]

The major difference between spot and futures trading are listed below:

Spot Trading: It's less riskier and your funds will not liquidated so easily in spot trading unless the coins is highly manipulative but at the same time you may expect profit but not huge profits like doubling your portfolio in a day like you get chance to do in futures trading.

Futures Trading: Highly risky and it can either make you or break you as there are chances of multiple your portfolio within a day or with just one lucky/bulls eye trade and it can also liquidate your funds in few seconds if the market goes against your bet. Even coins like Bitcoin and ETH are not safe for futures trading and people usually end up losing due to higher leverages.

There are sites like coinmarketcap and coingecko which will give you the details on liquidity of the coins. I would say stick to Bitcoin or ETH in Spot trading or DCA  and don't experiment with futures trading.

[Issa56]

what are the advantages of trading in spot?

Spot trading has so many advantages, and I will be telling you about some of them. If you are in spot trading, the amount of coin you are holding will never reduce, the only thing that will reduce or increase is the price of the coin you are holding. If you are holding 10 bitcoin, then it will never reduce or increase. If you are trading on stop, there is nothing like a liquidation price. Compared to if you are trading on futures, if you are holding bitcoin and the price of bitcoin is dropping, if you can just keep on holding, then the price will bounce back. You won’t be scared that you will end up getting liquidated if the bitcoin price gets to a certain price.
 
When you are trading on spot, you will always have peace of mind compared to if you are trading in futures. But the main reason why people are trading in futures is just because of the high reward. You can open a trade, and you will decide to use high leverage, which will give you a high reward, but the risk of you losing your money in the trade is also high.

[tvplus006]

The major difference between spot and futures trading are listed below:

Spot Trading: It's less riskier and your funds will not liquidated so easily in spot trading unless the coins is highly manipulative but at the same time you may expect profit but not huge profits like doubling your portfolio in a day like you get chance to do in futures trading.

Futures Trading: Highly risky and it can either make you or break you as there are chances of multiple your portfolio within a day or with just one lucky/bulls eye trade and it can also liquidate your funds in few seconds if the market goes against your bet. Even coins like Bitcoin and ETH are not safe for futures trading and people usually end up losing due to higher leverages...

The main mistake of beginners is that they ignore the rules of risk management, opening positions with very high leverage, while using the entire deposit. This method of trading leads to a quick liquidation of the position. But if he opens his position with a minimum leverage of 2-3% of his deposit, then his chances of not losing the deposit will increase greatly.

[Bobrox]

To make simple difference between spot trading and future trading.

Spot trading can't make your assets loss and future trading will make it losses, but most of trader prefer with future trading has positive viewed small fund easily earn much profitable with future trading get advantage leverage supported and some coins give feature more than x125. Spot trading is manually with x1 profitable and small capital in spot trading seems very difficult to earn much profit such as future trading, but remember high risk will earn high return in future trading and some one want to get lower risk have to accept with low return with spot trading.
Make your choose which one have more positive side with future trading or spot trading, I think many trader can't leave with their habit in future trading more faster earn profit than spot trading.

[batang_bitcoin]

Whatever you choose in futures, the risk is higher than the spot. While in spot trading, you just have to set your order whether it's buying or selling order.
If they're filled, that's good but you have also to set yourself with stop loss and that's the same with futures because you're just trying to protect yourself from any further losses.
Don't get it wrong when you are in the spot trading, it's not a wallet that you should keep there but the actual purpose is to trade.

[goaldigger]

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?

My tips for you is to learn more about trading and stop asking this kind of questions because if you already know how to trade, you can have the confidence to know the difference between this two and you will know which strategy can work for you. If you are going to do trading, it requires enough skills and knowledge because if none, you might not be able to make money in trading and the risk is high. Spot trading is less risky as you are the one to set everything and you will not be liquidated here if the market goes on a different way, futures are only to those who can afford the high risk of trading.

[JayTrain]

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 and futures trading each have their own advantages and disadvantages. I prefer spot trading due to its simplicity and the availability of a wide range of coins. However, when it comes to liquidity, caution is necessary. I try to avoid coins with low liquidity to steer clear of issues with order execution. When examining the order book, I pay attention to volumes and trading frequency to mitigate potential manipulations or spoofing.

[RockBell]

the advantage of spot trading is that you can trade without having to worry about margin calls and you can buy or sell whenever you want. meanwhile, if you trade in futures, it is quite risky if you don't place a stop loss or if the price falls significantly it could make you make a margin call and lose all your money.

so for those who want to profit quickly but with lower capital, they can choose futures trading. but for safer trading, spot can be the best choice.

it is either a spot or a holding for me I love patronizing less risking things, and futures might have risky measures but everyone has a choice of how to run their assets and holdings are separate and spot trading is for upkeep, and you don't have to bother too much about liquidation because with this hard economy losing money will not be pleasant at all, and that is why I have choosing to do the less risky ones.

I have tried futures and have discovered that it is not for me, holding is even one of the safest ways to keep your asset safe and it might take longer for you to start making a profit but when you are making a profit it will be a large profit were you kept your bitcoin for 10 years you should know the amount of profit you would have made from holding. so it is better to have your plan because if you don't have any other means of earning holding will not favor you.

[IvugeoEvolutionCoin]

Spot trading and futures trading each have their own advantages and disadvantages. I prefer spot trading due to its simplicity and the availability of a wide range of coins. However, when it comes to liquidity, caution is necessary. I try to avoid coins with low liquidity to steer clear of issues with order execution. When examining the order book, I pay attention to volumes and trading frequency to mitigate potential manipulations or spoofing.

Between spot trading and futures trading I do spot trading most of the time. I lost a huge amount of money in futures trading several months ago and thought I would never do futures trading again. Futures trading has become a deadly addiction for me. I don't know why.  It happened to me that I lost all my money in futures trading. But I like spot trading a lot, it seems much safer to me.

[boyptc]

I have no tip for you because I don't trade in futures. But if you do, you'll learn it on your way if you push that through.

But I'd say that you better not because it's going to cause you possible and very likely to lose if you are starting out.

The logic here is that, how you're going to learn things if you don't do it, right? But we say that you shouldn't and it's all on you now.

[Hamphser]

I have no tip for you because I don't trade in futures. But if you do, you'll learn it on your way if you push that through.

But I'd say that you better not because it's going to cause you possible and very likely to lose if you are starting out.

The logic here is that, how you're going to learn things if you don't do it, right? But we say that you shouldn't and it's all on you now.

On the time that you do know spot then you would really be able to have those thoughts on trying out to make use those knowledge on touching up futures trading. I would be lying
that there would really be a time that you would really be having those thoughts in mind that you would really be testing out on having that futures trading.
It isnt really that bad on testing out something that you havent been able to test or try before, it is really just that the risks involved is really just that too high comparing into spots.
You are the ones who would really be making those kind of insights whether you could be able to bare up with the risks or not. It would really be that something
situational and not all would really be having on the same decisions be made out.

[mirakal]

Whatever you choose in futures, the risk is higher than the spot. While in spot trading, you just have to set your order whether it's buying or selling order.
If they're filled, that's good but you have also to set yourself with stop loss and that's the same with futures because you're just trying to protect yourself from any further losses.
Don't get it wrong when you are in the spot trading, it's not a wallet that you should keep there but the actual purpose is to trade.

Trading futures have always been more risky than spot trading but it’s quite more advantageous than spot trading since you can gain higher leverage with lower transaction costs. However, if you are still new in the trading process, never jump into spot or futures trading. The risk is high when you don’t know and you don’t have the assurance of what you are doing. Just invest and hold first. And when you think you are ready to trade, go with spot trading first as the risk to lose is less if you are trading with potential coins.

Trading is not hard nor easy. But if you are more experienced and more inclined trading in the market, trading in profits whether it’s spot or in futures, will be quite easier to perform.