Spot Trading vs Futures Trading | Bitcointalksearch.org

stomachgrowls

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Quote from: wxa7115 on March 08, 2024, 09:53:28 PM

Quote from: justdimin on March 05, 2024, 04:41:32 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Futures trading is something much riskier we all know that, however I have seen people reach to a point at trading where they are so good that they want bigger profits for their successful trades. Let's assume that you are trader who has been making profit at spot trading for many years now, why would you not want to do futures? Sure there could be some loss along the way, but you will make a lot of money with it as well. You can double your money with a single 1% increase if you wager high enough margin.

So, this is why there are some great traders who just prefer futures because even though they might make wrong moves time to time, they could still be in profit overall. And there are some noobs who does it for more money, they just straight up lose money.

There is nothing wrong with expert traders moving from spot trading to futures trading, and in fact this is a move they must do, so they can increase the profits they can make.

However, how many of those that try futures trading are actual experts and how many are people that just believe themselves to be that skilled? And it must be obvious the latter group is way larger than the former, something that also explains the money expert traders can make with futures trading, otherwise if only experts were found on that market, they will have a very difficult time profiting from each other.

There are ones who do really take up risks and they would really be tending to switch from spot to futures on which i dont see anything wrong with that as long you could be able to bare up with the risks
then this what matter the most. There are really just that newbie traders who do really tend to touch futures without having that tough fundamentals or foundation when it comes to their skills
and their knowledge towards the market and this is why on the time that they do step up their foot then this is where they do wreck up themselves hard.

For me it would really be always recommended that you should really be starting with spot trading and on the time that you are sustainable with spot then you could test out that
futures but of course extreme risks management would really be something needed. This is why it would be better to establish out yourself first before making decisions.

wxa7115

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Quote from: justdimin on March 05, 2024, 04:41:32 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Futures trading is something much riskier we all know that, however I have seen people reach to a point at trading where they are so good that they want bigger profits for their successful trades. Let's assume that you are trader who has been making profit at spot trading for many years now, why would you not want to do futures? Sure there could be some loss along the way, but you will make a lot of money with it as well. You can double your money with a single 1% increase if you wager high enough margin.

So, this is why there are some great traders who just prefer futures because even though they might make wrong moves time to time, they could still be in profit overall. And there are some noobs who does it for more money, they just straight up lose money.

There is nothing wrong with expert traders moving from spot trading to futures trading, and in fact this is a move they must do, so they can increase the profits they can make.

However, how many of those that try futures trading are actual experts and how many are people that just believe themselves to be that skilled? And it must be obvious the latter group is way larger than the former, something that also explains the money expert traders can make with futures trading, otherwise if only experts were found on that market, they will have a very difficult time profiting from each other.

adpinbr

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I can only advise you on the coin I am very sure about yes for me. The best coin is bitcoin and Ethereum. You can actually proceed on getting other coin for me. I am not very sure about it sometimes the coin for drastically that you may not even understand and you ask yourself why the strength of bitcoin is higher than any other coin you can ever think up. If you want to go into a different coin, you have to think very well and make some research and also go to CoinMarketCap and ask questions.

justdimin

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Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Futures trading is something much riskier we all know that, however I have seen people reach to a point at trading where they are so good that they want bigger profits for their successful trades. Let's assume that you are trader who has been making profit at spot trading for many years now, why would you not want to do futures? Sure there could be some loss along the way, but you will make a lot of money with it as well. You can double your money with a single 1% increase if you wager high enough margin.

So, this is why there are some great traders who just prefer futures because even though they might make wrong moves time to time, they could still be in profit overall. And there are some noobs who does it for more money, they just straight up lose money.

joeperry

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Most of the people answer your question regarding what coins to avoid and where to take a look at the market cap etc. Now, I want to answer your question regarding spot trading and futures trading, in simple terms you can consider the other as normal trading and the other as gambling.

In spot trading it's like buying a fruit, you bought 10 pcs of banana for $10 and even if the price of the banana goes down, you still have 10 bananas (The item you've bought lose value but you still have it) while in futures trading it's like betting your $10 if it's going up or down and it's either you'll double it or lose it all. I am not sure if my explanation is confusing but I hope you get the gist. Grin

retreat

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Quote from: shawonngp on February 28, 2024, 06:56:24 AM

Gambling and future trading is almost same it's my point of view, because it's very risky task and 99.99% chances to you get liquidated.
-snip-

It's not the same. Gambling is gambling, where you bet your money to be able to get money in a short time. Meanwhile, futures trading is just trading but using leverage to help people get higher profits but with less money. And as for liquidation, it depends on how the trader carries out the trade - if he just buy/sell without calculation and without risk management, not only will he be liquidated 99% of the time, but 100% of such people will be liquidated.

adpinbr

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Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

the best coin right now is bitcoin for now I am not sure about any other kind but it’s not really advisable all good to buy coin at this current of bull run are already high. It would’ve been more better if you had buy one coin was low, but now coins are already high, and you may not really make profit out of it and it’s not just a good risk, so there for It is advisable that you should wait until the market is low again before you can buy, so right now we are on the bull run so wait on it it is over and the market will come back low then you can buy and wait for it to go high, and there is a lot of coin out there that is good for that. I can make you get profits very fast, but you may buy them now, and it will fall drastically. are you just have to do is have some patience until this season is over then you can talk about buying a store because by then it will be low.

shinratensei_

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Quote from: Strongkored on February 28, 2024, 06:02:03 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

in spot trading you can change it to a long term holder when the market moves not according to your analysis although you can also do a stop loss when this happens so you don't experience bigger losses, but many traders are reluctant to use that because they think the market will go up again even though there is a risk of losing it is very possible to happen when you trade in altcoins except for Bitcoin, while futures trading is riskier and this is suitable for those who like risks and challenges, and this is highly recommended for traders whose skills are good enough because just by guessing the market you will only just throwing away your money in futures trades.

just want to mention some of disadvantage of spot trading here in general spot trading require tremendous capital to have meaningful profit otherwise choosing a risky coin could also be an option but it also requires large risk tolerance.
in general rule of thumbs, only trade spot if you could afford to wait until the price get back up again but there is certainly something that gonna shake you up psychologically like basically when the price just dipping further and further this could be really problematic if you somehow buy at the peak.
personally i would trade spot when it is bearish so that even if it dumps a little i know it won't dump too sharp, and usually at highs like this im just betting my money on future shorting certain coin that reached their peak.
but always remember that future is basically just you betting on what market gonna behave in the next certain time frame, you don't own anything really.

tvplus006

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Quote from: TheUltraElite on March 04, 2024, 09:59:55 AM

...Like @MusaMohamed has mentioned, liquidation fees is one of the hidden nightmares that come with futures and margin...

In the event that a trader's position is liquidated, he has to pay an additional commission to the exchange. The easiest way to avoid this is that you need to set the stop loss slightly higher than your position liquidation level. Thus, your position will be closed at a stop loss, not liquidated, and you will not pay a liquidation fee.

kingvirtus09

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Quote from: Strongkored on February 28, 2024, 06:02:03 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

in spot trading you can change it to a long term holder when the market moves not according to your analysis although you can also do a stop loss when this happens so you don't experience bigger losses, but many traders are reluctant to use that because they think the market will go up again even though there is a risk of losing it is very possible to happen when you trade in altcoins except for Bitcoin, while futures trading is riskier and this is suitable for those who like risks and challenges, and this is highly recommended for traders whose skills are good enough because just by guessing the market you will only just throwing away your money in futures trades.

With what's happening in the market now because it's an uptrend, I think it's a bit difficult to do futures trading; it's better for me to do spot trading. Just kidding, just one week has passed, the size of the market has immediately increased, and even meme coins are already rising.

So, those who hold bitcoin or meme coins will surely make the big profit that they have now if they sell their held coins in spot trading. This is just my conclusion.

Litzki1990

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Two types of trading and two types of strategies have to be done. In spot trading there is no chance of losing your money completely after you buy a coin no matter how much the price of that coin goes down but in futures trading it is different. In case of futures trading, if you trade at the wrong time or with excessive risk, you can lose money completely by trading. It is better not to do futures trading if you don't have enough knowledge about trading and enough skills. If a trader thinks that his trading skills are low and his knowledge about trading is low then I will tell him that future trading is not a right decision but he will definitely lose his money if he does future trading. A trader can do spot trading at the beginning of trading and later on if he is more skilled he can do futures trading with relatively less risk.

LogitechMouse

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Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Trading in spot = a lesser chance of getting liquidated and if you are, it will take some time before it happens.
Trading in future = It's a disaster especially when you're a newbie. Cheesy

Kidding aside, I wouldn't recommend doing it because your money might get *poof* within minutes after you enter.

Coins to avoid? I don't think there's any more than the coins that don't have enough trading volume because there's a chance that some whales might manipulate its price by pumping and dumping it. If a newbie wants to trade, I will always recommend focusing more on spot trading because even though the profits there are lower and slower compared to that of futures trading, the amount of risk of getting liquidated is lower. Futures are for those who have balls, and many experiences in trading. I tried it even though I don't have enough experience to back me up, and you know what happened to me. Cheesy

Spoofing? Possible, but even though it's happening, I don't think they can stop it. Price manipulation is very evident though especially for those coins that have a low trading volume.

TheUltraElite

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So anyway, I applied as a merit source :)

Spot is the only mode of trading that is not a full gamble. Any other modes of trading is a gamble and that includes futures, margin, leverage and any other whacky term you can make up.

Remember that with spot trading you actually have an asset at hand (fiat or altcoins) to exchange back to get your bitcoins back. If you are sulking about your loss, just wait for the proper moment and complete the opposite trade. But this opportunity does not exist with non-spot modes of trading.

Like @MusaMohamed has mentioned, liquidation fees is one of the hidden nightmares that come with futures and margin.

After having seen these modes for some time now, my opinion is that these are only created to give the exchange our money in exchange of taking the risk. Roll Eyes

Phoenixtrader

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Quote from: shawonngp on February 28, 2024, 06:56:24 AM

Gambling and future trading is almost same it's my point of view, because it's very risky task and 99.99% chances to you get liquidated.
Spot trading is less risky and you can pick your favorite coin to trade here. You can check coinmarketcap and choose top altcoins and you understand what coins you should avoid by analyzing through cmc.

I beg to differ, futures trading isn't gambling. It's a skill that when perfected your wins will be way more..spot trading on the other hand is easier.. requires less skill

MusaMohamed

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Futures trading and Margin trading enthusiasts and newbies who have interest in these trading types, must see this live lesson.

First, Short traders were liquidated and next Long traders were liquidated and these liquidations all happened within 5 minutes. Is it risky or safe to join?

See another chart for Total Liquidation and pay your attention on liquidations for both Long and Short 6 hours ago. You longed, you were killed. You shorted, you were killed too.
https://www.coinglass.com/LiquidationData

crwth

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The advantage of trading spot is that you won't have to worry about liquidation and will be able to select the coins you want to proceed with. You should select a coin that you should be able to say "I'm okay with having a bag of this coin" or something like that so if we are in a bear market, you wouldn't worry too much about the price going down.

Just know and research the background of the coin you are trying to trade so that you would see that there is actual trading volume for that specific coin.

poodle63

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Quote from: Strongkored on February 28, 2024, 06:02:03 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

in spot trading you can change it to a long term holder when the market moves not according to your analysis although you can also do a stop loss when this happens so you don't experience bigger losses, but many traders are reluctant to use that because they think the market will go up again even though there is a risk of losing it is very possible to happen when you trade in altcoins except for Bitcoin, while futures trading is riskier and this is suitable for those who like risks and challenges, and this is highly recommended for traders whose skills are good enough because just by guessing the market you will only just throwing away your money in futures trades.

future trading basically profiting off the margin of when we entry and the current market price thats it sounds like spot trading but we are betting on the margin here not buying, meanwhile spot is buying and selling at higher price (if that ever works out for some) and we can literally be an investor if things goes south you know holding the coin for long term since we have unrealized loss, eventually if the market price going up again we can avoid the loss and be profitable instead, and I agree spot trading seems more newbie friendly because the fact that we really buying coin and its in our wallet only mean we have the leisure of not selling it when we are at loss meanwhile with future we are forced liquidation when we are having too much loss that it eats up entire contracts.
thats why so many of people here recommended spot trading for newbie the principle is just basic its like your ordinary trade, you buy thing you sell it at higher price whether the market going down or up later on
but thats it.

wxa7115

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Quote from: Strongkored on February 28, 2024, 06:02:03 AM

Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

in spot trading you can change it to a long term holder when the market moves not according to your analysis although you can also do a stop loss when this happens so you don't experience bigger losses, but many traders are reluctant to use that because they think the market will go up again even though there is a risk of losing it is very possible to happen when you trade in altcoins except for Bitcoin

Trying to become a long term holder after a bad trade is a poor decision, and this is because the person doing this was not mentally prepared to do it, so it is unlikely they will have the mental fortitude to keep holding their coins if the price keeps going down.

Traders need to accept that even if they can make profits they will lose a bunch of trades too, and when they make a mistake or the market moves against them, there is nothing wrong with accepting that fact and selling for a loss.

R100K-Martin-Lunger

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Quote from: david678345 on February 19, 2024, 02:06:25 PM

what are the advantages of trading in spot? I see there are many more coins available in spot but I guess that I should be careful with liquidity of those coins...

How can I know what coins to avoid? because of liquidity or manipulation etc? any tips when looking at the order book? spoofing etc?

Spot trading offers the advantage of accessing a wide variety of coins, providing more opportunities for diversification. However, liquidity is a key concern; low liquidity can lead to price manipulation and difficulty in executing trades at desired prices. To identify coins to avoid, scrutinize the order book for signs of spoofing or unusual activity, such as large orders that appear and disappear quickly, which can indicate attempts to manipulate the market. Always research the trading volume and market depth of a coin to assess its liquidity. High trading volume and consistent market activity are generally positive indicators of a healthy market for a coin.
If you would like to discuss this further, you can contact me via my Discord: https://discord.gg/dCvaBZWNcG

shawonngp

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Gambling and future trading is almost same it's my point of view, because it's very risky task and 99.99% chances to you get liquidated.
Spot trading is less risky and you can pick your favorite coin to trade here. You can check coinmarketcap and choose top altcoins and you understand what coins you should avoid by analyzing through cmc.

Topic: Spot Trading vs Futures Trading (Read 772 times)