Topic: Basic Types of Trading - page 6. (Read 609 times)
I know about this two type of trading Spot and future trading, but i see one more option on Binance exchange, margin. I don’t know about this but i always use Spot exchange for Trading.
With my view as a trader I can say future trading is trading and spot is hodling where we can consider investors, this is the way I see it. This class of people are those that are always scared of fud, they jump out at any slightest assumed negative news. They are always scared of doubling there money in both ways, that is in falling and rising of price like a real futures trader.
In futures is the trader. That person with passion to fight with others to spontaneously take out his or her share of the daily or swing money revolving in the market. This futures can be considered to have some pattern of trading like the scalper, daily trader or swing trader. This is my genuine idea of it because I don't see a hodler to be a trader.
In futures is the trader. That person with passion to fight with others to spontaneously take out his or her share of the daily or swing money revolving in the market. This futures can be considered to have some pattern of trading like the scalper, daily trader or swing trader. This is my genuine idea of it because I don't see a hodler to be a trader.
I appreciate your post here even though it requires more and more study and discussion so newbies can understand. It's easy to say that this and this goes with this but the practical application would be the best way to learn. Like registering to Binance or any other exchange that provides those different markets and just see the features in it.
One of the best ways to learn about trading is through the academy of Binance. I just appreciate how they provided so much knowledge and just made it into the academy. It's worthwhile reading.
https://academy.binance.com/en/start-here
One of the best ways to learn about trading is through the academy of Binance. I just appreciate how they provided so much knowledge and just made it into the academy. It's worthwhile reading.
https://academy.binance.com/en/start-here
I would prefer to clarify trading into two categories
- Gambling trading: When you simply make buy and sell orders, without your own research about projects and liquidation formualas, etc.
- I meant when you see price skyrockets or plummets, you have to make your research why did it happen. If you simply make buy or sell orders because of big green or red candles, you will complete your trade with loses. Not all dips are great to buy and can help you get profit.
- Knowledgeable trading: when you are traders who already do in-depth research about projects & exchanges (liquidation) for your trade and have your own risk-benefit management.
The best way to raise which type of trading is suitable for you is to try both options and then decide.
Spot trading is most secure and safety option for crypto currency trading, maximum people use spot option for crypto trading but i see many people use future trading option and at the end maximum people lost their fund. My clear opinion is that Spot option is better than Future trading.
OP,is this post about the different trading strategies or just the types of trading?
The bulls and bears have different strategies.Bulls are buying low and selling high,the bears are selling now and expecting the price to drop,so they could buy at a lower price.
There's also scalping,where the trader is buying and selling multiple times per day,making small profits out of multiple trades.
The traders,who don't have a particular strategy are called "sheep",if I remember this correctly.
There's a risk of losing your coin,if the crypto exchange scams you,or your trading accounts gets hacked.
The bulls and bears have different strategies.Bulls are buying low and selling high,the bears are selling now and expecting the price to drop,so they could buy at a lower price.
There's also scalping,where the trader is buying and selling multiple times per day,making small profits out of multiple trades.
The traders,who don't have a particular strategy are called "sheep",if I remember this correctly.
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Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
There's a risk of losing your coin,if the crypto exchange scams you,or your trading accounts gets hacked.
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
You can if you sell all of it. That's how you lose your coin there when you sell it at losses or even in profit. You no longer own and you no longer don't have that coin of yours because you've already ordered it to be in sale and somebody took that order.
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For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
Newbie reading this shouldn't just jump into trading as it isn't as easy as you read, there is no guarantee the next high price as majority of the coins been pump today dies down before the next bull runs come along. The only coin that can guarantee you the next high price is Bitcoin and instead of trading, holding is the best option.
Skills and experience is needed if you intend been profitable in any of the three forms of trading on the Binance exchange and instead of jumping on any coins listed on binance exchange, carryout some research to guarantee you're not trading some hype bullshit because Binance exchange has been guilty of listing many of those of recent.
When you think of it, it's more like they no longer carryout in depth research anymore before listing a project, they're just after the community speculating on the project, putting their hunger to dominate the exchange industry over the safety of their customers.
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
On binance, there is margin trading, it is merged with spot but not the same as spot, it is even related more to future trading because you can leverage up to 10x using margin trading.While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Also 1x long on future trading should not result to liquidation, what can result to liquidation is 1x short or increasing the leverage which incresses the risks, I will not encourage anyone to go for future and margin because they are very risky, million of dollar can easily be liquidated in just few minutes or hours.For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
It depends on the coin, I will say yes if you are talking about bitcoin, but many altcoins are shitcoins, their price will dump but will never rise back and remain shitcoins forever, newbies should know, learn and understand the coin he wants to trade with. While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
For newbies, spot trading will be a better type of trading as they do not have to worry about the price and as long as they can hold the coin and not sell at a low price, they will have a chance to sell at the next high price.
Future and margin trading will not suit newbies, especially if they do not have much knowledge in analyzing the market and they will panic to see the price is down for a little.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Be careful deciding which types of trading you want and I suggest using spot trading while learning more about trading.
Future and margin trading will not suit newbies, especially if they do not have much knowledge in analyzing the market and they will panic to see the price is down for a little.
While in spot trading, you are not actually losing if you do not sell your coin, in the future and margin trading, you can lose all of your funds if you do not close your trade.
Be careful deciding which types of trading you want and I suggest using spot trading while learning more about trading.
There are 3 actually, the last one is margin trading. It might seem the same as futures however its slightly different than futures.
Basically on margin you got much less leverage, usually 10x instead of 125x. You also pay different fees and the bitcoin that you long, is actually bought on the real spot market. So you are not buying a derivative like you are on the futures platform.
With margin you pay a fixed rate depending if you long or short bitcoin. And on futures the rate is determined by the funding rate or the futures premium/discount. So they are more or less the same but with different rules.
Basically on margin you got much less leverage, usually 10x instead of 125x. You also pay different fees and the bitcoin that you long, is actually bought on the real spot market. So you are not buying a derivative like you are on the futures platform.
With margin you pay a fixed rate depending if you long or short bitcoin. And on futures the rate is determined by the funding rate or the futures premium/discount. So they are more or less the same but with different rules.
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough
📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in opposite direction from your prediction, you lose your money and your coin
Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.
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