Long term investing - Spot, Margin or Derivatives?

CapGelatik

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Quote from: GatotKaca on October 07, 2022, 11:10:40 PM

Quote from: Oilacris on October 07, 2022, 06:45:47 PM

Quote from: d3nz on October 04, 2022, 07:01:46 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

I highly agree I have lost a lot of money on future trading, and I would say that spot trading is recommended since you can only get an impermanent loss while you can gain profit over time if the market goes up again.

And spot trading can only be the same as futures trading if you trade with bigger funds or volume.

Futures and spot could really be never the same.You are simply contradicting on what you are saying.Speaking about impermanent loss then thats the beauty when you do spot.
When you are just still a noob then it would be that sensible and understandable that you shouldnt really touch up things which does require sufficient skills and experience
in the market.Dont make yourself in a hurry so that you wouldnt be ending up lots of mistakes.

You'll find out soon whenever you do able to experience futures/leverage or derivatives.

today many novice traders even directly trade futures. no matter where they learn from, but without enough experience, futures trading will only lose their money.
if they profit from trading futures, I guess it's just a coincidence of their guesswork.
spot trading I think will be more friendly, for beginners or even those who are already pros. because some traders do like the spot and don't like other trades.

I think that by jumping right in and trying future trading without maximum preparation, of course it's just a waste of time and in the end we lose money easily,
think well before doing something and make sure we have the knowledge and skills,
obviously don't try to play in crypto because the risk is losing money

xSkylarx

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Quote from: loll_l on September 21, 2022, 11:06:48 PM

3 - If I've understood both the above scenarios correctly, what is the benefit in using Spot or Margin? It seems to me that Derivatives does exactly the same as Spot and Margin with the added benefit of additional leverage if required! Is that not right?

I'm wondering why not just buy on spot so it would be also stress free for you? I haven't seen anyone that invested in derivatives for their long term investment in crypto. There is also funding fee on derivatives which increases your liquidation price as long as the trade is open. You'll just lose money again if you're really planning to open a position at $14k and leave it for a long time. No one knows if your target price of $56k will certainly happen next. What if bitcoin's price will just consolidate between $15k-20k for some years then your suppossed to be profit just went to funding fee.

SquirrelJulietGarden

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Quote from: rozak on October 04, 2022, 06:02:03 AM

That's what makes Margin or Derivatives risk bigger than spot trading. only in spot trading, of course, have to choose the right asset. if the wrong choice of assets, of course, the long term or short term will be useless.

Margin and derivatives trading are for risk takers. It has more risk than Spot trading. If a trader can not succeed in Spot trading, it is impossible to succeed in Margin and Derivatives tradings.

Quote

people with simple market analysis skills, of course, prefer spot trading. this will make the trader less risky, not without risk. because all trades I think have their level of risk.

You are right that Spot trading is easier to handle and if you fail with your analysis or projection but you pick a good asset like Bitcoin, you can turn from trading to long term holding. It is still good enough.

Back to topic title and discussion, personally it is incorrect to include Spot, Margin and Derivatives into Long term investment. These ones are trading, not investment. Investment means buying something, Bitcoin ie. and store it in your non custodial wallet a long time.

Wawa2013

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Quote from: GatotKaca on October 07, 2022, 11:10:40 PM

Quote from: Oilacris on October 07, 2022, 06:45:47 PM

Quote from: d3nz on October 04, 2022, 07:01:46 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

I highly agree I have lost a lot of money on future trading, and I would say that spot trading is recommended since you can only get an impermanent loss while you can gain profit over time if the market goes up again.

And spot trading can only be the same as futures trading if you trade with bigger funds or volume.

Futures and spot could really be never the same.You are simply contradicting on what you are saying.Speaking about impermanent loss then thats the beauty when you do spot.
When you are just still a noob then it would be that sensible and understandable that you shouldnt really touch up things which does require sufficient skills and experience
in the market.Dont make yourself in a hurry so that you wouldnt be ending up lots of mistakes.

You'll find out soon whenever you do able to experience futures/leverage or derivatives.

today many novice traders even directly trade futures. no matter where they learn from, but without enough experience, futures trading will only lose their money.
if they profit from trading futures, I guess it's just a coincidence of their guesswork.
spot trading I think will be more friendly, for beginners or even those who are already pros. because some traders do like the spot and don't like other trades.

It's sad that so many newbies try futures trading without learning it first. The newbie wasted his money in vain, and the annoying thing is that
there are some newbies who have lost their money due to losing in futures trading, so blaming crypto as a whole, just because they don't accept
the losses they've suffered. That's because too many influencers who show off their success make huge profits from futures trading. So many
newbies are influenced by these influencers, which is why newbies should be willing to check every information they get. So don't just believe
what other people say.

In fact, futures trading is not for everyone, because the risk is very high. Only people who have good trading skills and are also experienced in
the crypto world, can generate satisfactory profits from futures trading. Because for me futures trading is the highest level in the crypto world.
Therefore, if we want to succeed in futures trading, we must start mastering spot trading first. So there must be stages that must be passed first
before we finally try futures trading.

GatotKaca

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Quote from: Oilacris on October 07, 2022, 06:45:47 PM

Quote from: d3nz on October 04, 2022, 07:01:46 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

I highly agree I have lost a lot of money on future trading, and I would say that spot trading is recommended since you can only get an impermanent loss while you can gain profit over time if the market goes up again.

And spot trading can only be the same as futures trading if you trade with bigger funds or volume.

Futures and spot could really be never the same.You are simply contradicting on what you are saying.Speaking about impermanent loss then thats the beauty when you do spot.
When you are just still a noob then it would be that sensible and understandable that you shouldnt really touch up things which does require sufficient skills and experience
in the market.Dont make yourself in a hurry so that you wouldnt be ending up lots of mistakes.

You'll find out soon whenever you do able to experience futures/leverage or derivatives.

today many novice traders even directly trade futures. no matter where they learn from, but without enough experience, futures trading will only lose their money.
if they profit from trading futures, I guess it's just a coincidence of their guesswork.
spot trading I think will be more friendly, for beginners or even those who are already pros. because some traders do like the spot and don't like other trades.

Oilacris

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Quote from: d3nz on October 04, 2022, 07:01:46 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

I highly agree I have lost a lot of money on future trading, and I would say that spot trading is recommended since you can only get an impermanent loss while you can gain profit over time if the market goes up again.

And spot trading can only be the same as futures trading if you trade with bigger funds or volume.

Futures and spot could really be never the same.You are simply contradicting on what you are saying.Speaking about impermanent loss then thats the beauty when you do spot.
When you are just still a noob then it would be that sensible and understandable that you shouldnt really touch up things which does require sufficient skills and experience
in the market.Dont make yourself in a hurry so that you wouldnt be ending up lots of mistakes.

You'll find out soon whenever you do able to experience futures/leverage or derivatives.

el kaka22

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I feel like the question could be would you prefer long term? derivatives? spot? margin trading? Like not which of these three for long term, but more like which of these four would you prefer? That is why I was thinking about long term would be better for me, but that's a personal thing and I prefer it that way, maybe I am wrong, maybe you would be better with margin trading, maybe the other person would be better at spot, it all depends on what you are accustomed to do.

Simply, doing DCA with bitcoin for years to decade would be the better option for all of us who believe into the future of bitcoins. Buy bitcoins regularly and send it to your cold wallet and track your progress in bitcoin explorer and that's all; finally you will find yourself a millionaire without risking in any type of trading.

KingsDen

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Quote from: coinerer on September 24, 2022, 07:40:22 AM

I am not find any connection with Spot, Margin or Derivatives for long term investment. Spot, Margin or Derivatives just a different trading system. if you want to keep holding your investment coins then you must keep your coins on your personal wallet or any exchange long time as much as you want. here spot can help you if you want to hold your coins in any exchange account

Tbh, I was confused and was like have I been doing the wrong thing this while? I know the future and margin options are for day traders and not for longterm investors. I am investing on a long term and I do that not on an exchange but in a personal wallet that I don't access often.
Even a friend of mine went to cold storage, I was just reasoning how he will begin to apply future trading in his cold storage.
The options Op listed above are for trading and not for long investing, unless he keeps his coins in an exchange for long investment, which is not ideal.

d3nz

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Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

I highly agree I have lost a lot of money on future trading, and I would say that spot trading is recommended since you can only get an impermanent loss while you can gain profit over time if the market goes up again.

And spot trading can only be the same as futures trading if you trade with bigger funds or volume.

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Quote from: blue_hurricanger on October 04, 2022, 05:30:16 AM

If you want to maximize your gains over a long time of holding, sure Margin or Derivatives is there for you. But as always, they're very risky and if you approach the market at the wrong angle, your loss will be much higher than just a simple Spot investment. To be honest, I think it's really up to you, to see if the gains are worth the risk or not. In my opinion, a long-term period of time in crypto is very hard to predict, too variable. Margin or Derivatives should be on the short-term investment, as long as you see a nice enough gain and profit, get out. Spot is more for the long term cause you ain't at risk if you keep holding it, as long as you've invested in a good altcoin or ETH and BTC.

That's what makes Margin or Derivatives risk bigger than spot trading. only in spot trading, of course, have to choose the right asset. if the wrong choice of assets, of course, the long term or short term will be useless.
people with simple market analysis skills, of course, prefer spot trading. this will make the trader less risky, not without risk. because all trades I think have their level of risk.

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If you want to maximize your gains over a long time of holding, sure Margin or Derivatives is there for you. But as always, they're very risky and if you approach the market at the wrong angle, your loss will be much higher than just a simple Spot investment. To be honest, I think it's really up to you, to see if the gains are worth the risk or not. In my opinion, a long-term period of time in crypto is very hard to predict, too variable. Margin or Derivatives should be on the short-term investment, as long as you see a nice enough gain and profit, get out. Spot is more for the long term cause you ain't at risk if you keep holding it, as long as you've invested in a good altcoin or ETH and BTC.

deathcode

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Quote from: Beparanf on October 02, 2022, 08:15:51 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

This is true in crypto trading because of the liquidity and the risk involved. Using a trading tool that has interest and liquidation risk on volatile market is really not efficient in long term because the price volatility is already enough for profit multiplier in crypto rather than risk everything on one single price swing if the market moves in opposite direction of your position.

Spot is really the best for long term not efficiently but safely.

therefore many traders are more comfortable using spot trading for them. I'm not saying the other trades are not good, they can get more profit. but of course, the risks faced would be greater.
for those who want to develop skills in trading, it is not a problem. but for me, who have very little experience and skills in trading, will prefer to trade a spot.

libert19

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I do spot, either coin disappear or gives massive gains in few years timeline. Margin/derivatives trades are time bound afaik. I do not trade those, dipped my toes a couple times, lost some and gives anxiety.

Beparanf

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Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

This is true in crypto trading because of the liquidity and the risk involved. Using a trading tool that has interest and liquidation risk on volatile market is really not efficient in long term because the price volatility is already enough for profit multiplier in crypto rather than risk everything on one single price swing if the market moves in opposite direction of your position.

Spot is really the best for long term not efficiently but safely.

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Quote from: AmoreJaz on October 01, 2022, 06:40:47 AM

Quote from: passwordnow on October 01, 2022, 03:53:35 AM

Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits.

You're likely to lose more there than holding if you're for the long term. Long term doesn't mean that you have to actively trade and get the maximum profit. Someone who's aiming for that is losing more than the others who are chill with holding and does nothing.

only few coins are worth holding long-term. this is why if you will venture on coins outside the top 10, you need to be very cautious with their market performance. if you feel they are about to go down, better sell it while you can. futures is only for those who know what they are doing. spot trading is good for starters, at least get the grasp of crypto trading. once you are getting good, you can explore other types of trading. but you need to start small so you won't lose much.

It's a long list if you'll look at the rankings but just to be safe, rank 1 and 2 are the best option and we all know that they are - BTC and eth. And about having that feeling of going down, it's your take to sell them anyway but if you're holding bitcoin and you're not even close to break even, are you going to sell as it goes down? I don't think that you'll take the losses and you'll sell bitcoin and you'll remain with nothing but a reduced capital that you did because of being not patient.

DanWalker

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Quote from: loll_l on September 26, 2022, 01:35:06 AM

If however, hypothetically speaking, we lived in a world where exchanges were perfectly safe and you didn't need to move your crypto to a wallet...

No, it's not what you think. Hold your money on centralized exchanges like you are depositing your savings in a bank, they can freeze your account any time or worse, the exchange crashes and you lose your assets. Money on a centralized exchange is not yours.
Unlike exchanges, non-custodial wallets like trustwallet or metamask, you are the only one who holds the keys and only you can access and use your property.

Looks like you need to learn more basics to get ahead in the market. I recommend equipping you with more knowledge before looking at investments or trades you are making, such as spot or derivatives...

GreatArkansas

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Quote from: |MINER| on October 01, 2022, 03:06:50 PM

If you ask me that question then my answer will be spot trading because here you can hold your fund like decentralised wallet. And decentralised Wallet is the best for holding big fund for a long and cold wallet can be use for it . So if anyone wanna invest for long-term then choose spot trading for it and if the fund is big then use cold wallet for holding.

The additional thing is you can stake the altcoins/Bitcoins you bought from spot trading to some platform like a centralized exchange or some DeFi platforms, because here, on spot trading, you will literally hold the real coin you bought, compared to derivatives like the futures market, which will only stay on the exchange.
Especially in a markett like these times, it's very risky to trade with high leverage if you are doing long, so spot for me is the safest.

|MINER|

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If you ask me that question then my answer will be spot trading because here you can hold your fund like decentralised wallet. And decentralised Wallet is the best for holding big fund for a long and cold wallet can be use for it . So if anyone wanna invest for long-term then choose spot trading for it and if the fund is big then use cold wallet for holding.

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Spot is the best if you want to play safe and less worry for liquidation if the price get sour at the time you enter. Margin trading is the best if you want to get additional capital and to earn more with risk but manageable if you have enough capital to extend the liquidation margin to safe level but make sure to use only the leverage that your margin can handle and gives enough room for liquidation price margin.

Leverage trading is only good for short term trading since it has funding rate and liquidation price margin is very small than Margin trading so I don't recommend it for long term use unless you are onky using x3 below leverage.

kapalmabur

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Quote from: Hamza2424 on October 01, 2022, 02:09:29 AM

Spot is the most productive side for the long long term investment as Low risk and also highly recommend for maximum profits. I know that Future trade is more attractive in term of the profits but as there is high risk for the investment according to the market sentiments in long term there is no place for the Future trade. Spot is a best option where surety of profits can be managed.

The spot market is indeed a trader's choice because it is safer and more comfortable than trading on futures,
but there are things that you may all forget that trading in the spot if you are wrong in buying and are greedy then of course you will still lose,
for example you buy Bitcoin priced at $60k and you hold until the current price because you have a reason Bitcoin will go to $100k,
yes that's an action that should be avoided in the spot market, because it will make you lose.

Topic: Long term investing - Spot, Margin or Derivatives? (Read 532 times)