Spot Trading vs Futures Trading - page 2.

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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?

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.

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Quote from: Dr. Strange on February 24, 2024, 10:49:18 AM

Spot trading is buying some coins and keeping them for a few days or three or four hours and then selling those coins to make a good profit. Good coin selection for spot trading. For example: bitcoin, altcoin... Although there are many risks in altcoin, so in selecting altcoin, good coins should be selected from 1 to 30 to get good profit. On the other hand, if you want to trade futures, you need to acquire good knowledge. First, you need to know how to do market analysis. Whatever trading you do, do it with your own knowledge. Then it will be better in all aspects.

Some definition of your spot trading are seem to be for short-term investing already and I'm still not sure if spot traders can hold and wait for a couple of hours before they execute a trade. When it comes to risk when choosing a coin to trade, isn't Bitcoin also very risky? Because, its volatility is so high but it's just that it doesn't disappear quickly like what most altcoins are doing, and as long as you know how to play with the volatility, it can be your friend.

In common perspective, both futures and spot trading, need a good knowledge and analysis. I think skills and luck are also two of the qualities that we need, much more if we are going to trade futures.

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Quote from: _act_ on February 24, 2024, 03:18:36 AM

That is why you talk about margin call and liquidation. If you are a future trader, you can decide not to be greedy and just go 1x or less than 1x which will make liquidation not to be possible if the trader go long position, and also making the liquidation to be hard for short position if the trader is trading good coins like bitcoin. Future trading can be good but people are using it to trade with greed and they are losing because of that. The coins trader is trading is also very important. There are some coins that are easily manipulated. Traders should avoid such coins as they are coins with low marketcap.

Its trader habit, small capital and want to earn much profitable in future trading but using unbelievable leverage and easily to get liquidation, I think if want secure with trading future and have far away with liquid position, in future trading some coins easily manipulating price and I don't know why have much gap price between spot and future trading and make easily for us with liquid.
In future trading have to back up fund for recovery when price drop drastically and we can waiting for longer time and other possibilities with price drop or pump if have bigger fund for margin. In the reality many trader of future have small fund, not recovery fund for margin and using maximum leverage to earn much profitable and most close with liquidation.

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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?

You can't predict the outcome of future so futures trading is kind of risky gambling while spot trading is the traditional way of buying and selling so more often you will see every possible trading pairs and about the liquidity you can check in the orders tab of the particular pair to know whether the volume for the current price is good or not.

Manipulation is inevitable, so you need to learn how to tackle the manipulation by not falling into their traps.

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Quote from: lalabotax on February 24, 2024, 04:15:18 PM

Simply, as long as your coins are still listed on exchange, your coins will not be lost as long as you are not selling them. It means that you must be careful in choosing which coins to invest or trade in the spot market. Because this will give some influence to the result of your trading in the spot. If we are talking about the gains or profits, this may not be as high as in the future market. But the risk of losing all money because of liquidation and other risks, the Spot market will be much lower than the Future market.

There are many traders trading spot because spot trading is better, you can't be liquidated totally if you're trading spot but you can be liquidated when you're trading futures. Futures trading will give you more profits because you can use higher leverage and you're risking more but spot trading will give you more comfort in trading. Spot trading is a better option for newbies and also for old traders that don't have a good trading record. If you haven't mastered spot trading that you can make profits when you want if the market doesn't change then don't think about trading future because you'll lose everything due to lack of experience and also if you don't have enough money don't think about future trading.

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Quote from: lixer on February 25, 2024, 10:46:11 AM

Larger capital with less risk sounds better than lower capital but high risk, especially if the trader isn't highly experienced with all kinds of market conditions and trading practices including risk-management techniques. So if the person who is going to trade is a newbie, they should have the lower capital but get into spot trading first because they lack the necessary knowledge and can't survive in the futures trading.

Once they start to get a grip on their trading and start understanding the market very well, they can always decide to try different trading markets such as futures and margin because they know they can manage the risks involved with their techniques and strategies.

New traders try to compensate the low amount of capital they can use to trade by increasing the risks they take, and while in theory this makes sense, as it will allow them to make the same kind of profits someone with a larger amount of capital could make, when they put it in practice they fail spectacularly.

This happens because someone with an adequate capital can choose trades with low risk and still earn a good amount of money, but those that go for the higher risk have greater probabilities of losing, and a few bad trades are enough to wipe out their capital completely.

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Quote from: moneystery on February 20, 2024, 11:00:27 AM

the advantage of spot trading is that you can trade without having to worry about margin calls and you can buy or sell whenever you want. meanwhile, if you trade in futures, it is quite risky if you don't place a stop loss or if the price falls significantly it could make you make a margin call and lose all your money.

so for those who want to profit quickly but with lower capital, they can choose futures trading. but for safer trading, spot can be the best choice.

Larger capital with less risk sounds better than lower capital but high risk, especially if the trader isn't highly experienced with all kinds of market conditions and trading practices including risk-management techniques. So if the person who is going to trade is a newbie, they should have the lower capital but get into spot trading first because they lack the necessary knowledge and can't survive in the futures trading.

Once they start to get a grip on their trading and start understanding the market very well, they can always decide to try different trading markets such as futures and margin because they know they can manage the risks involved with their techniques and strategies.

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Quote from: cute nmp on February 24, 2024, 03:43:17 PM

Will go with spot trading any time of the day Futures trading is a lot more harder and it contain lots of risks.For beginner traders i will advise them to start out with spot trading before diving into futures.

futures definitely designed for those trying to find adrenaline rush and its fine, in future we are just talking about margin, not about the coin in our posession, if we lose then we lost our contract value which means we lose our money. with spot we can at least get the coin in their wallet despite the fact that it might be useless since we are basically in a floating loss in that scenario.
but its definitely suited for people that just want to invest and left, the thing with future that sometime caught people off guard is probably the flash pump and dump, if sometime the price change was so steep, it could definitely cause us to lost our future position and get liquidated.
that is mostly the thing that im worried about, because losing position because of flash pump or dump just seems like the silliest thing it could be but believe me there are millions worth of dollar contract always getting liquidated if somehow the price dumps so sharp in market of derivatives and perpetual.

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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?

you cant see about liquidity manipulation or not.
has advantages compared to futures in terms of losses. because in spot if your analysis is wrong, you can still hold it with a stake to increase income while waiting for prices to rise. if in futures the wrong analysis can MC your capital will run out due to margin calls.

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Quote from: Ben Barubal on February 24, 2024, 05:07:13 PM

As for spot, it is almost the opposite of futures. On the spot, if you sell or buy crypto assets, and when you or we see that we have a profit, we can immediately get it when we sell or buy, just as simple as that.

It only seems that spot trading is simple, it is enough to buy low and sell high) But what will you do if the price continues to decline contrary to your expectations? Using stop loss in the spot market is just as useful as in futures. Or do you prefer to wait until the price rises to the purchase level again?

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Quote from: tvplus006 on February 24, 2024, 08:41:56 AM

Quote from: shield132 on February 24, 2024, 06:11:22 AM

...Just imagine that you opened short position on Bitcoin at the time when the price was 30K recently and now it reached 50K, imagine how stressful it is every day to watch how big a loss you experience and the price isn't going down in your favour...

Obviously, a risk management strategy was devised for this purpose. Using a stop loss in this case will be the right decision that will reduce the loss. And after closing a short position, you can open a long position and get a profit that compensates for your loss received when the stop loss is triggered.

What you're saying is actually easy to understand for traders who often do futures trading, and what you said is also correct. Because if they don't do that, for sure, their balance will be dissolved or lost to nothing. That's why SL has a big part in that matter to control the losses in case there is a mistake in the analysis done in the trading activity.

As for spot, it is almost the opposite of futures. On the spot, if you sell or buy crypto assets, and when you or we see that we have a profit, we can immediately get it when we sell or buy, just as simple as that.

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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...

Simply, as long as your coins are still listed on exchange, your coins will not be lost as long as you are not selling them. It means that you must be careful in choosing which coins to invest or trade in the spot market. Because this will give some influence to the result of your trading in the spot. If we are talking about the gains or profits, this may not be as high as in the future market. But the risk of losing all money because of liquidation and other risks, the Spot market will be much lower than the Future market.

Simply, it is about higher risk, higher gains probabilities. So, this will depend on what kind of trading activities you are going to enter. If you want any future position, ensure that you have really prepared all things very well. This may not be easy at all, but this will help us on managing our risks of losing. Enough knowledge is very important. And ensure you really understand that the Future trading is very high risk, and not really recommended for any newbie.

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Will go with spot trading any time of the day Futures trading is a lot more harder and it contain lots of risks.For beginner traders i will advise them to start out with spot trading before diving into futures.

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Quote from: AnonBitCoiner on February 24, 2024, 12:28:33 PM

Instead of trading you should choose investment because trading is very risky. I will suggest that don't waste your money and time on useless coins just hold top coins like bitcoin, etheruem and many more top coin because it reduces the risk to loss money.

Identification of coins can be possible if you read about the project's details carefully and try to know about its market cap because the higher the market cap the stronger will be the coin and more successful will be that coin with huge market cap.

Indeed, investment is the best choice if we don't want to take a big risk, especially if we invest in trusted coins, especially bitcoin. We only need to hold it for a long time. Indeed, in this case it will certainly take longer for us to benefit, but if we are afraid of risk then the choice is as I said.

Never assume trading is an easy way to get profits in a short time, because it is in line with the risks that can also lose money in a very short time. Especially for beginners who already think wrong about trading from the beginning.

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Considering the risk side, there are two types of trading. The riskiest of trading is futures trading and relatively less risky trading is spot trading. A trader has to take maximum risk of money in future trading as well as be skilled and have a clear understanding of the market. If there is any mistake in the market analysis, the trader has a high risk of losing money. There is usually little room for mistakes in trading, and if you make a mistake, your money will be at serious risk and your money will be damaged from which it will be difficult to recover. But spot trading is not that risky at all, every trader should do spot trading if there is a large amount of capital because there is no chance of losing the money completely and it is much less risky.

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Instead of trading you should choose investment because trading is very risky. I will suggest that don't waste your money and time on useless coins just hold top coins like bitcoin, etheruem and many more top coin because it reduces the risk to loss money.

Identification of coins can be possible if you read about the project's details carefully and try to know about its market cap because the higher the market cap the stronger will be the coin and more successful will be that coin with huge market cap.

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Spot trading is buying some coins and keeping them for a few days or three or four hours and then selling those coins to make a good profit. Good coin selection for spot trading. For example: bitcoin, altcoin... Although there are many risks in altcoin, so in selecting altcoin, good coins should be selected from 1 to 30 to get good profit. On the other hand, if you want to trade futures, you need to acquire good knowledge. First, you need to know how to do market analysis. Whatever trading you do, do it with your own knowledge. Then it will be better in all aspects.

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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?

select the top Bitcoin and Altcoins on the market. and don't forget to choose an exchange that has a good reputation for your start. Spot trading will be better for beginners than futures trading which is more interesting but can increase the risk.
Learn about trading first and some features you can use before trying to trade. it will save you from confusion when trading.

I recommend avoiding getting interested in new tokens on the exchange. focus on the top coin as a start. You can start developing your knowledge with other altcoins if you already understand.

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Quote from: shield132 on February 24, 2024, 06:11:22 AM

...Just imagine that you opened short position on Bitcoin at the time when the price was 30K recently and now it reached 50K, imagine how stressful it is every day to watch how big a loss you experience and the price isn't going down in your favour...

Obviously, a risk management strategy was devised for this purpose. Using a stop loss in this case will be the right decision that will reduce the loss. And after closing a short position, you can open a long position and get a profit that compensates for your loss received when the stop loss is triggered.

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Quote from: _act_ on February 24, 2024, 03:18:36 AM

Quote from: moneystery on February 20, 2024, 11:00:27 AM

so for those who want to profit quickly but with lower capital, they can choose futures trading. but for safer trading, spot can be the best choice.

That is why you talk about margin call and liquidation. If you are a future trader, you can decide not to be greedy and just go 1x or less than 1x which will make liquidation not to be possible if the trader go long position, and also making the liquidation to be hard for short position if the trader is trading good coins like bitcoin. Future trading can be good but people are using it to trade with greed and they are losing because of that. The coins trader is trading is also very important. There are some coins that are easily manipulated. Traders should avoid such coins as they are coins with low marketcap.

Futures trading is the worst nightmare, it's not for people who have a job and do some other activities. To my mind, futures trading is for people who can spend 24/7 on their computer on a trading platform and to be fair, that's very depressing. Futures trading with any kind of leverage is depressing when you make a short sell because price might rise and you hesitate to close your position, then the price increases and there is no other way for you and you eventually liquidate. Just imagine that you opened short position on Bitcoin at the time when the price was 30K recently and now it reached 50K, imagine how stressful it is every day to watch how big a loss you experience and the price isn't going down in your favour.

I would only do spot trading, especially since cryptocurrencies have such a big potential to rise. It isn't worth the headache and anxiety to open a short position for 10-20% profit with the risk of liquidating everything.

Topic: Spot Trading vs Futures Trading - page 2. (Read 794 times)