Topic: Spot trading or future trading which trading is best for beginers? - page 13. (Read 2004 times)

Like we all know that trading can be very risky if one does not know how to trade very well or comprehend how the crypto market works.
If a newbie choose to trade the future market and he understands the pros and cons, that will be much appreciated and easy to enter the market without much risk because the necessary things are understandable.

Where the problem will come is when a newbie enters the market and is not able to utilize the necessary information that is meant to scale through the market, whereby making consecutive loses as a result of ignorance. We need to learn and have a comprehensive skills when we enter the market.

I recommend spot trading over futures for beginners because they can avoid losing their capital if the market reverses. As long as they can hold the coin, they still have a chance to sell it at a high price but it depends on the coin they buy.

If they are better at spot trading, they can try futures trading but still use a small amount of money so that if they lose, the loss is not too big. In addition, they also have to be able to analyze better to know when they have to close their trades.

And don't forget that each spot trading and futures trading has risks. It's also better to learn about managing the risks so you don't get big.

When it comes to the level of risk, Futures Trading is quite high which is why it was recommended for newbies to just start spot trading. Well, we have to consider this as a sort of familiarization with how trading works. Because as we begin trading, it was not we look on the trading features and big profit but what we are looking for is how to adjust/adapt ourselves to it.

Well, I tell you that OP the majority of the traders are preferred spot trading. In fact, they already have long trading experience but still, they remain on spot trading because they feel comfortable with this and it was a very important thing to consider as well.

While the most experienced ones, they can take the risk tolerance for the futures. It's the quickest way to gain but also the risk is too high compared to the spot trading. For newbies, it's recommended to just stay in the spot, and if you want to test out futures then be prepared for the potential losses that you'll get. It's just easy to have it heard from others that futures are profitable. But you test and see if it's an easy for your own experience because the reality will make you regret that those overheard statements are overrated and far from the reality.
While those spot traders that have been confident already, they're the ones that will try to go in futures but it has no restriction, anyone can try it and if you want to get eaten by the whales and market, be aware of that.

There are so many risk involves with future trading and it'll need lots of experience which a newbie won't have since he'll just be starting and haven't traded for sometime to have the trading experience needed for the market. Future trading brings more profits so people will be naturally attracted to it but it also has its worst side which is losing in a larger scale.

As a beginner, focus on spot trading. It's the simplest form of trading and you can easily understand that spot market. Spot trading doesn't have a high leverage that'll make you lose very fast. Anybody can understand spot trading between couple of weeks that you start learning.

If any newbie knows the risk that's in future trading, then they won't go for future trading. Most people always think about the high reward in future trading, but they don't know the higher your reward, the higher the chances of you losing money, the higher your leverage, the higher your chances of losing money. Basically newbies should just start trading with stop trading, I believe it's easier to manage your risk in spot trading compare to future trading. In spot trading you can hold your coin even after dumping, but in future their is a level you will get to that you will get liquidated and all your money is gone.

When I also started trading, I started with spot trading, after few weeks I discovered future trading and I noticed that the amount I was making from future trading was kind of higher than spot trading, but I didn't notice the risk associated with it early. When I started losing money in future trading, I wasted all the money I deposited to trade with, I deposited more money and moved it to my future trading account and wasted it again, I was kind of addicted to future trading then, but when I came back to my right senses, I have to force myself to stop trading futures, and since then I don't really go close to future trading and I don't encourage anyone to do that.

Most of the beginners prefer to trade on futures as opposed to spot because they are impatient and want to quickly profit from their trades. In futures there is margin which can be a leverage for beginners who have little capital to be able to earn more from their trades, but most beginners get stuck here and it's no wonder that many beginners end up empty handed when they trade in futures, because they are too greedy and hasty in making decisions. My advice for beginners is that it is better to trade on spot than on futures, because actually futures are provided only for professionals to trade freely. When you are a beginner, you should trade on the spot market, which is much safer, because when you lose, it will not use up the entire deposit you have because there is no term margin call there.

Spot trading is good for beginners. But if the beginner determine to use only one 1x leverage and not going beyond that, he can learn future trading because it is the actual trading that is equivalent to trading forex, stocks and commodities in a way that you can either go long or short.

Without mincing words, spot trading is better for beginners, they are still just been introduced to the world of trading and investment, so I implore them to take one step after the other. With spot trading, the trader is more or less investing their money, just like buying the asset and holding it, which poses a reduced level of risk compared to futures trading.

Future trading is just like traditional financial market trading, how many people have you seen that are successful through it? The risk of leveraged/margin products is always high and the chance of losing one's money totally is high too.

There is no difference really in Both. Price will go up or down in both. The largest difference is that with futures you aren’t buying the physical coin you are just buying a derivative. And hence you get larger leverage. Sometimes 100x. Sounds good doesn’t it?

Well the problem is that with 100x you can get liquidated very fast and blow your account. With spot there is no leverage and you can’t get liquidated. So for new people it’s safer.

Also there are funding fees with futures, especially perp futures while spot doesn’t have these fees.

Even the not-so-newbie prefers the spot because it's easy to just hold the BTC whenever the price drops. When you buy  0.02BTC @ $500 and the price dips and its value drops $400, your BTC will still be 0.02BTC. Nothing is lost compared to futures trading where you'd lose some if you exit the position. Worse if you get the margin call your money will be liquidated.

For a newbie, the Spot market is a good way to train yourself, you don't even need a demo account.

Thanks for your advise.

I advise you to begin with spot trading if you are new to trading cryptocurrencies. Most newbies I believe started from spot trading, just like me, a few years ago.

You can then think about transitioning to futures trading once you have a better understanding of the market and how it functions. Master first or familiarize how trading works then you can start doing futures trading with very less leverage.

Both spot buying and selling and futures trading have their personal benefits and downsides, and it ultimately depends at the individual trader's desires, threat tolerance, and trading style.

Spot trading entails buying and promoting assets at the cutting-edge marketplace rate, and it's miles generally considered less unstable than futures buying and selling. It is a great alternative for novices who are simply starting out in trading and want to get a feel for the marketplace. However, spot trading can also be volatile, and fees can differ swiftly, so traders want a good way to manipulate their threat correctly.

Futures buying and selling, however, includes buying and selling contracts that promise to deliver an asset at a destiny date at a predetermined fee. It allows buyers to take positions on the course of an asset's price movement with out definitely owning the underlying asset. Futures trading can be extra complicated and unstable than spot trading, and it calls for more understanding and revel in. Futures buying and selling can be appropriate for buyers who have a better threat tolerance and are looking for greater superior trading techniques.