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 something much riskier we all know that, however I have seen people reach to a point at trading where they are so good that they want bigger profits for their successful trades. Let's assume that you are trader who has been making profit at spot trading for many years now, why would you not want to do futures? Sure there could be some loss along the way, but you will make a lot of money with it as well. You can double your money with a single 1% increase if you wager high enough margin.
So, this is why there are some great traders who just prefer futures because even though they might make wrong moves time to time, they could still be in profit overall. And there are some noobs who does it for more money, they just straight up lose money.
There is nothing wrong with expert traders moving from spot trading to futures trading, and in fact this is a move they must do, so they can increase the profits they can make.
However, how many of those that try futures trading are actual experts and how many are people that just believe themselves to be that skilled? And it must be obvious the latter group is way larger than the former, something that also explains the money expert traders can make with futures trading, otherwise if only experts were found on that market, they will have a very difficult time profiting from each other.
There are ones who do really take up risks and they would really be tending to switch from spot to futures on which i dont see anything wrong with that as long you could be able to bare up with the risks
then this what matter the most. There are really just that newbie traders who do really tend to touch futures without having that tough fundamentals or foundation when it comes to their skills
and their knowledge towards the market and this is why on the time that they do step up their foot then this is where they do wreck up themselves hard.
For me it would really be always recommended that you should really be starting with spot trading and on the time that you are sustainable with spot then you could test out that
futures but of course extreme risks management would really be something needed. This is why it would be better to establish out yourself first before making decisions.
