How tough is futures in comparison to spot trading

[DegenLite]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

[Oshosondy]

Future trading is riskier than spot trading. I always advice my friends not to go into future trading because I know how risky it is.

If you are able not to use high leverage but using low leverage, it will help you. But most derivative traders are tempted to use high leverage and losing.

[BABY SHOES]

The right board to talk about trade: https://bitcointalk.org/index.php?board=8.0

Futures trading is much more risky especially if you use high leverage you have to analyze the coin being traded and even this is not easy.

Whereas spot trading is much simpler, you buy low and sell high.
Most of the time I only trade spot for me it's less risky than futures.

[AbuBhakar]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Don’t. Futures has a liquidation to your asset which is strong disadvantage when trading a very volatile asset like cryptocurrency. Spot itself provides huge volatility for a huge profit potential so you just need to just accumulate via spot trading until you built your holdings and wait for the tokens to grow without getting the risk of being liquidated.

At least on spot trading, you will only experience paper loss once the price dump but you can recover it back once price return above your buy price which is not an option for futures trading your funds was loss once you are liquidated.

Just trade with spot and play safe if you are new to trading.

[Apocollapse]

Futures is like gambling, if you pick wrong decision, you will lost almost all of your money, but if you pick the right one, you will earn a lot money in short term. While spot trading is just lowering the risk, you can loss and you can earn, but not that much compared to futures.

If you confident enough, then try it. What I can say is demo account/fake money is way easier than using real account/real money.

[tabas]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

Demo is different from actual trading with spot and futures. If you think that you are ready for the risk, you should take it try it to see it for yourself. It sound so easy to say when we want to test it out but in actuality, you're doing a hard thing to be honest. Many newbies are making a mistake to test futures instead of doing spot first. But no one is going to stop you from doing futures so that you'll see how it really goes.

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Not me, I can't take the risk with that. It's hard for me to assess the risk in there than spot.

[Z-tight]

It isn't recommended for newbies to start off with trading at all, but if they must, then i think it should be spot trading, it has a lesser risk and lesser complexities too than futures trading, as well as other advantages for someone who just started trading. Futures trading carries more risk and take note that demo trading is very different from when your own money is at risk, mistakes come easier when you know you have something to lose.

You can move the topic to trading discussion section, since it is about trading and not bitcoin in itself. You'll find 'move topic' in the lower left area of your screen, use it.

[Yatsan]

Higher leverage means bigger risk; bigger risk means bigger rewards but also possible bigger loss. Risk is present to both spot trading and futures trading however, it is definitely bigger with futures due to leverage. As we all know, in futures trading, the margin of your actual money is being multiplied and same goes with PNL or profit in every price movement of your chosen crypto. Why is it involving more risk? In every movement, multiplier in loss is also evident; I'd say money moves faster than with spot trading, in all outcomes. In the long run, I could say spot trading is more efficient but with lower phase dependening on your engaged money.

Futures is like gambling, if you pick wrong decision, you will lost almost all of your money, but if you pick the right one, you will earn a lot money in short term. While spot trading is just lowering the risk, you can loss and you can earn, but not that much compared to futures.

If you confident enough, then try it. What I can say is demo account/fake money is way easier than using real account/real money.

Alike with gambling if you have no market price action plans. If you are just guessing which direction will the price go then basically you are referring to luck alone. You could control the leverage and trading outcome; it is just that manipulation happens on smaller time frames.

[Hamza2424]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Buddy this topic, doesn't belong to the Bitcoin section, you need to move to the trading discussion section, anyway I'm sure the Moderator will move it sooner, Sticking to the topic, bro future is not for the newbies, I'm not saying that you are a newbie, in skills and experience the future has harsh requirements, it requires the highest risk management.

Also better to stick on the spot trading as in this market until you close in loss you are not in loss, but for the future as soon as the liquidation price hits, you are rekt.

[Adbitco]

Future trading is actually risky but when you knows it very well it became simple what you need is to have enough funds, although trading requires having enough fund to enable to cover up your trading for period this is would depend on your Lot size. Spot trading is one of the simplest and easiest trading which I think before you could be able to succeed in any of the trading you must know all the fundamentals.

[Zaguru12]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Spot trading is just like investing in a coin and leaving it there without leverages (most exchanges or platforms do not add leverages to spot) and allowing it to grow in profit till a certain time you want. While futures is predicting the future also, the use of leverages is where the high risk of trading it comes from. You will have heard of the narrative surrounding futures been more profitable than spots which is kind of true but it’s also poses more losses and liquidation.

Futures is truly hard, you would need to learn many things like fundamental analysis and most especially technical analysis which which is studying charts and so on with spots you don’t need most of these. You will also need to have very good knowledge of risky management which is one knowledge when lacking results in traders getting liquidated.

[yhiaali3]

As most of the members pointed out above, trading futures carries high risks and I do not advise you to actually start it unless you have significant experience and are able to bear the loss. It is best to start with spot trading first.

Demo trading is different from real trading. It is true that you gain some experience through demo trading, but this does not mean that you have become an expert in futures contracts. There are many things and things that you must learn that are not revealed to you through demo trading.

[DegenLite]

Future trading is riskier than spot trading. I always advice my friends not to go into future trading because I know how risky it is.

If you are able not to use high leverage but using low leverage, it will help you. But most derivative traders are tempted to use high leverage and losing.

defs I don't plan on using crazy leverage, I'll stick to around 5x max for now. Thanks for the advice mate

[DegenLite]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Don’t. Futures has a liquidation to your asset which is strong disadvantage when trading a very volatile asset like cryptocurrency. Spot itself provides huge volatility for a huge profit potential so you just need to just accumulate via spot trading until you built your holdings and wait for the tokens to grow without getting the risk of being liquidated.

At least on spot trading, you will only experience paper loss once the price dump but you can recover it back once price return above your buy price which is not an option for futures trading your funds was loss once you are liquidated.

Just trade with spot and play safe if you are new to trading.

Well you are right, it's easy to get at least your capital on spot trading and futures is even more difficult. Maybe I should stick to spot only hmm

[Faisal2202]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

It's a great thing that you are doing demo trading as its a good start, all newbies should test their strategies on demo accounts but keep one thing in mind demo trading's experience is not the same as of real trading. Because in real trading your funds will be at stake. Not if you are doing spot as in spot there is always a chance of getting your funds back in some time as you are not going to lose them.

But in future, there is always a risk of being liquidated, you can lose it all if the market goes against your prediction and the market often does that. It gives huge pumps and dumps and you can lose it all. I am not saying you should try or not, its your own decisions I am just sharing what I have experienced it was full of stress for me. I find Spot better, than Futures. So DYOR NFA, save your funds from futures and try to give a try to Spot and yeah in spot you need more funds but in future you can easily get up to 50x leverage.

[coolcoinz]

I always tell people that futures trading is basically dealing in fake asset instead of the real thing. Why would you even do that if the real thing is easily accessible?

Bitcoin futures is just a bet in a casino. You get a slip to prove that you sent them money and made a bet and if you're correct you get some money back. Why would you even consider that if you can hold real bitcoin and if you happen to forget about it or die, it will still be there waiting for your children or relatives to take it (as long as you leave them some information)?
Always choose the real deal if you can, don't trade fakes. 

[dunfida]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

Better to make yourself be mastered first on spot trading with live account or balance before you would really be tending to jump into futures. Also, if you are doing good or making some
good results or positive in demo trading then this is something that a solid indication that you would really be just also fine on doing live futures trading because if you do tend to compare demo with live
trading or with having that real balance trading then it would really be that a complete different story. This is why it would really be that recommended that you should be sticking with spot
first and then on futures or never ever touch futures if you arent that prepared on losing that big and very fast.

Still curious about your ability to trade? Then try it and see for yourself but dont blame on the moment that you do get easily liquidate. 

[Phoenixtrader]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

But I'm sure you guys have traded futures a lot, how hard is it compared to spot?

First off I'll suggest you work on your risk management then take the bold step to do live trading.. I wish you luck. Btw what exchange is that and what's the event about. You can share more details or probably a link to it..

[Mr.right85]

I plan to learn futures trading and dive into it fully, I've been demo trading for a while now and I've been doing fine and I think I can make the big jump now maybe because the exchange I'm using is offering events for first time futures traders lol

When it comes to spot trading, it’s easier to trade on a short term and all your analysis are always based on what is happening at the moment in the market, your use of time frame often speculated closely to what could be the case and doesn’t give toom for much surprises. When it comes to future trading, your in for a lot of surprises as, your analysis spans through longer time frame which, gives room for constraints not fully considered to affect the market and you could be affected more than your prepared for if you ain’t watching.

[Assface16678]

The thing about futures is that its too risky just because you are predicting the next movement of the market and you will play with the leverage or what which is making it more risky, its like you are betting your money in what will be the outcome of the market, and depends on your funds and leverage that could be your profit or your lose, in spot you can just buy in the market price, you could buy just a fraction or what just a normal trading method unlike in futures the more you put money on it the more the damage could be done, and also it doesnt mean that you are doing fine in demo means thats also going to be good in actual, remember in actual one wrong move then you could lose all your funds, but its your choice, if you are ready and dedicated to risk it then why not.