Topic: Spot trading or future trading which trading is best for beginers? - page 4. (Read 2145 times)

Spot trading is the best choice because you won't be liquid when your prediction is wrong, you just have to be patient to wait for your coins to rise again, but you can also try selling them when you lose and buy them again when the price falls even further.
It's just that both have their own risks, the most effective way is for you to have experience in both.

You are so right, I totally agree. In particular, a group of traders say that in general you don't lose money unless you sell assets whose prices have fallen. Although this seems logical, unfortunately it isn't a correct strategy because if the value of a financial asset has fallen below the purchase level, it means that the basket has shrunk and that transaction is at a loss.

Comparing Bitcoin with other cryptocurrencies is of course correct but the point here is to ensure good risk management and invest depending on risk threshold. For example, an investor with a low risk threshold may choose only the two leading cryptocurrencies of the market such as Bitcoin and Ethereum to trade safely but an investor with a higher risk threshold will be able to increase his/her profit rate in direct proportion to the risk rate by choosing other altcoins. So, at this point I think the topic is related to risk management and risk threshold because every investment made has its own risks.

For example, unless there is an abnormal situation in the cryptocurrency markets, it is very likely that Bitcoin will continue its continuity but although it is very unlikely there is a possibility that this continuity may not be achieved in the future. This can be similarly exemplified in stocks. The world's largest companies or a company with a very low probability of going bankrupt may declare bankruptcy after a few years. In other words, risk is inherent in every investment in every sense but the investor determines the rate of this risk with his own decisions depending on his/her risk threshold.

but are you sure that your knowledge would be used in the case of volatile market like crypto? most of the time such knowledge aren't reliable source of knowledge that could influence the trading.
because at the end of the day trading quite literally is just speculating, the only thing thats useful in my opinion in trading is knowing the news ahead of the other people they you can make the decision earlier and make profit out of it after all the early birds get most of the profit.

I would say that for newbies, spot trading, and buying right after the coin is having correction, is the most useful strategy that require less knowledge and also less effort to analyse, for newbie without experience, i'd recommend such strategy, future is too much of a risk for a newbie that doesn't get the gist of overall situation of economy in cryptocurrency.

On spot, you wont really be that easily get liquidated considering the movement wont really be that much and the leverage is playing on 1x on which that it wont really be that putting you at risks
on blowing up your entire trading account when a huge wick candle would really be happening and since you are a newbie or beginner then it would really be always advisable that you should really be that starting first on doing spot and master out your skills and enhance your trading knowledge via with those real engagement and experience. You would really be able to find out whether you are really that doing
good or bad basing up on what you are really that doing.

You wont really be that so dumb on not to notice those differences and dont consider on touching up futures if you dont like to mess up your finances.
I do consider this to be that gambling like kind of thing but of course you could really be able to apply and make use of those analysis
but since this market is volatile and unpredictable then it would really be still imposing that high risks most of the time.

I think for beginners spot trading will be easier to understand and execute. because it involves buying and selling assets at current prices.
However, futures trading can involve contracts for future purchases or sales which can be more complex and have many risks to be aware of.

quite literally spot trading is just buying low selling high and thats it, really suited for beginners, future trading might promises massive returns but it also inline with the massive risk that it has.
the thing with most of future trader is that, they just choose some random coin, they analyse it not based on some logic and text book analysis but based on their gut feeling then leveraging 20X if not 100X then went bankrupt after wards for most of newbie trader that trying out future and eager to be rich in just few weeks, you've seen many that went bankrupt because they trade irresponsibly in future.
thats why its not recommended, because making good decision, not just throwing around money in some random shitcoin definitely takes energy and some people doesn't seem to favour doing analysis first.

Yes, it is true that trading on the spot for beginners is highly recommended compared to the Future market or those that use other leverage. But that doesn't mean that when trading on Spot, there is no risk of losing coins if you don't sell them. If it were Bitcoin, maybe it wouldn't matter so much. However, if it is altcoins, it could be a risk. because after all, we don't know whether these altcoins will continue to survive and be on the market or not. because recently we know that there are many altcoins that are delisted from exchanges and eventually just forgotten. And there are many altcoins that in the end are unable to reach a new ATH again once they have dropped. So the value of these altcoins is decreasing day by day. It would be lucky if it was a top altcoin that actually had good fundamentals so that it could at least be an investment.

Someone who is new to cryptocurrency trading and inexperienced should definitely trade on spot. This is because in spot transactions there is no risk of losing all the money in case of a possible market fluctuation. In this way, the initial capital is best protected and experience is gained more safely.

Futures transactions allow you to trade with several times your current capital. Although it may sound nice at first, the risk in futures transactions increases depending on the leverage ratio and there is a risk of losing all the money. For example, let's assume that 10x leverage is used with a budget of 1.000 USD, a position is opened that the cryptocurrency named ABC will rise and no stop-loss is used. If the cryptocurrency named ABC loses more than 10% of the value from position entry price, the entire 1.000 USD capital will be liquid. In other words, since a position of 10.000 USD was opened by using 1.000 USD as collateral, the current loss of value will be calculated on 10.000 USD and a 10% loss will result in the loss of all capital.

But how? Even though I explained futures trading in the simplest way, it is quite complicated for someone who is just starting out and has no experience, right? Additionally, it shouldn't be forgotten that it is complicated for a beginner and inexperienced trader due to the presence of many terminologies. So, with this comment I think I have expressed in the best way which choice should actually be made.

As a beginner ,I will advise one to go with spot trading as the best option ,Futures trading is very risky with lots of losses .Also futures need lots of knowledge on trading even if one is using a bot Unlike Spot trading which requires minimum knowledge and is more simpler for all not only beginners.

thats true, but sometime experiencing trading by your own will do a lot, basically whats needed for all those newbies just start out with some small capital that won't give burden to themselves then they are fine, after all just trying some demo account would just be a whole different experiences altogether because there's no emotion involved because we subsconsciously know that its not our money that we trades and its just some imaginary money, but using our own money it will be different experiences.
moreover spot trading is easy to mitigate loss, you get massive loss then you could just start holding the coin until another bullrun is coming and you're already set.
no need to cut loss because you only losing when you cut loss, but its different with future trading because usually the someone just lost their entire capital.

 Newbies are not supposed to trade in the first place, whether its spot or futures trading. There is high risk in trading and once you decide to trade clueless, you will never be successful with your desires to be a good trader. Its better to study the market first and create good market analysis, and settle to investing and long term hodling before embracing the challenges in trading.

Trading can be learned in time but you also have to exert a lot of effort and hard work to make it happen. And by letting yourself consistently experience what's there to experience in the trading market, then the eagerness and skills development will eventually take place in time.

Indeed. Having sufficient knowledge is a must, it is the main requirement for trading. Without sufficient knowledge, we only gamble our money by trading crypto coins. Sure, the chance to lose will be higher if we trade with a lack of knowledge. If trade in spot, the worse scenario is a big decrease of the value of our money if we fail to sell in the right time. But in future, we may lose all our money if we do a wrong thing. To avoid those bad scenario, we must ensure that we have good knowledge.

Yes, for the beginners, spot is a better choice. The pressure is much smaller than future. So, we can learn while trading with a more comfortable situation. As the beginner, it is recommended to choose the safest trading type. About to determine the trading position, every trader must be careful whether an expert or a beginner.

Knowledge and skills would really be everything specially on dealing up with something which is not really that simple to deal with. Dealing with a volatile market? From that word alone then you could already be able to point out that this wont really be an easy path to take. You would really be needing up that kind of approach on things before you would really be able to have some good grasps to it because not all would really be able to get it
on a short period of time. Of course you should not make yourself in a hurry because if you do find up yourself in a hurry then you are really that prone to lots of mistakes due to wrong assumption of things.It is never been that simple or easy to deal with. You would really be finding for yourself whether it would be easy or hard on the time that you do step your foot into the market or into this space. Speaking about being beginner then it would really be just that recommended that you should need to take master of spot before you would really be touching up futures, Why? dealing with higher leverage is suicide if you dont know on what you are doing.
It is really just that right that you would really be having that kind of approach because if not then losing big time would really be guaranteed.

Always take that slow pace of learning rather than on a faster one, just like i said that you would really be that prone to lots of mistakes and errors on that case and this is why you should really be that
careful on how you would really be gonna dealing with things.

Trading in the real-time market feels more straightforward, where you buy or sell assets at the current price. This is suitable if you want to experience the market "here and now". However, it can be a little nerve-wracking as prices can change quickly.
Futures trading creates a sense of promise of future price movements. It is as if you are entering into a contract for a specific price of an asset in the future. This can add a sense of foresight, but also more complexity and risk. You must be willing to wait to see how your investment develops. In futures, when I traded, I very often relied on my intuition and very often lost money. In general, it seems to me that futures trading is comparable to playing in a casino, there is a lot of excitement there.

Exactly this is the point which I am also thinking. Crypto Beginner should first try holding btc and low risk tokens and then check how it works. Beginners should practice emotion control, greed and learn technical analysis during this period. After practicing holding for some days then one should start spot trading in the safe coin like BTC and ETH. when he learned well then go for risky volatile coins where daily profit is possible.

I will not suggest future trading for anyone (beginners or Experts). I know many experienced trader lost so much in the future trading and better is to avoid it as much as we can because we have alternative in the form of spot trading.

When you see yourself has gained positive improvements on your trading performance and you are making significant profits from spot trading, then you can start risking some of your capital into futures trading. With this, you should trade more carefully and wisely. Otherwise, by committing just a single mistake, all your money and efforts will immediately go into waste.
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Anyone who wants to trade crypto assets must have knowledge and skills. otherwise, they will just lose their money, whether with spot or futures trading.
As a start, it would be better to learn spot trading. slowly apply the knowledge related to market analysis that you have just mastered. a beginner will be careful in determining trading positions. but that's not a problem all traders experience. Everything will develop as we trade longer and learn more from what is happening in the market.

Both spot trading and futures trading are actually risky for beginner traders. That is why they should not be trading in the first place but focus only on buying bitcoin and long term hodling. However, when there is greed, there is motivation to trade for quick profits. And for that, considering that you know already the basics in trading, I suggest you go  for spot trading. That is less risky than futures trading.

When you see yourself has gained positive improvements on your trading performance and you are making significant profits from spot trading, then you can start risking some of your capital into futures trading. With this, you should trade more carefully and wisely. Otherwise, by committing just a single mistake, all your money and efforts will immediately go into waste.

agreed with this one eventually future trading will cause loses meanwhile withn spot anyone could wait it out if the market suddenly dumping, moreover some newbies might also eager to trade future on 20x leverages and more meaning they are more vulnerable towards losing even more than those veteran that still thinks about the risk of leveraging too much.
spot trading is always suited for the beginners, since even if they mistake for example buying at peak when bullish season is almost ending, they could always be holding it, they only truly lose when they cut lose.
other than that they will always have plenty of chance to build their wealth up all the way up again by simply waiting, there's reason so many people have given testimony of how they went bankrupt trading futures.
but then again it depends on individual preference because some people are risk taker and loves the opportunity.

If you are new in crypto industry then start with the Spot trading. Because Future trading is for the experienced traders that have confidence they will not lose their money and take high leverage on their trade.
My opinion is start in crypto with the spot trading. Then you can move to future market for making high profit.
Learning is better then loosing money.

Trading is risky even if you would really be that talking about spot, how much on futures? It would really be just that common sense that you would really be that sticking with spot since leverage  trading is something
which is not a noob friendly considering that being liquidated would really be just that too easy and just that too short and this is something not really that recommended or advisable for noobs to touch on.
Even veteran ones wont really be that much that effective nor really that profitable with future, although there are ones who would really be able to make out but not all would really be failing this kind of
trading way or method. Yes, it is really that something that could give big profits if done it right but with markets volatility and unpredictability then it wouldnt be recommended for noobs.

If you are really just that starting with trading then always stick with spot, use small funds to make yourself that able to familiarize things on slow pace and not on a rushed way.
Futures is never been simple and never been that something that could be easily handled.If you could be able to take up some risks
then go ahead and see for yourself on how risky this market is.