Topic: Spot Trading vs Futures Trading (Read 794 times)

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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. 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.

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.

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.

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

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

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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?

    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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Trading futures have always been more risky than spot trading but it’s quite more advantageous than spot trading since you can gain higher leverage with lower transaction costs. However, if you are still new in the trading process, never jump into spot or futures trading. The risk is high when you don’t know and you don’t have the assurance of what you are doing. Just invest and hold first. And when you think you are ready to trade, go with spot trading first as the risk to lose is less if you are trading with potential coins.

Trading is not hard nor easy. But if you are more experienced and more inclined trading in the market, trading in profits whether it’s spot or in futures, will be quite easier to perform.

On the time that you do know spot then you would really be able to have those thoughts on trying out to make use those knowledge on touching up futures trading. I would be lying
that there would really be a time that you would really be having those thoughts in mind that you would really be testing out on having that futures trading.
It isnt really that bad on testing out something that you havent been able to test or try before, it is really just that the risks involved is really just that too high comparing into spots.
You are the ones who would really be making those kind of insights whether you could be able to bare up with the risks or not. It would really be that something
situational and not all would really be having on the same decisions be made out.

I have no tip for you because I don't trade in futures. But if you do, you'll learn it on your way if you push that through.

But I'd say that you better not because it's going to cause you possible and very likely to lose if you are starting out.

The logic here is that, how you're going to learn things if you don't do it, right? But we say that you shouldn't and it's all on you now.

Between spot trading and futures trading I do spot trading most of the time. I lost a huge amount of money in futures trading several months ago and thought I would never do futures trading again. Futures trading has become a deadly addiction for me. I don't know why.  It happened to me that I lost all my money in futures trading. But I like spot trading a lot, it seems much safer to me.

it is either a spot or a holding for me I love patronizing less risking things, and futures might have risky measures but everyone has a choice of how to run their assets and holdings are separate and spot trading is for upkeep, and you don't have to bother too much about liquidation because with this hard economy losing money will not be pleasant at all, and that is why I have choosing to do the less risky ones.

I have tried futures and have discovered that it is not for me, holding is even one of the safest ways to keep your asset safe and it might take longer for you to start making a profit but when you are making a profit it will be a large profit were you kept your bitcoin for 10 years you should know the amount of profit you would have made from holding. so it is better to have your plan because if you don't have any other means of earning holding will not favor you.

Spot trading and futures trading each have their own advantages and disadvantages. I prefer spot trading due to its simplicity and the availability of a wide range of coins. However, when it comes to liquidity, caution is necessary. I try to avoid coins with low liquidity to steer clear of issues with order execution. When examining the order book, I pay attention to volumes and trading frequency to mitigate potential manipulations or spoofing.

My tips for you is to learn more about trading and stop asking this kind of questions because if you already know how to trade, you can have the confidence to know the difference between this two and you will know which strategy can work for you. If you are going to do trading, it requires enough skills and knowledge because if none, you might not be able to make money in trading and the risk is high. Spot trading is less risky as you are the one to set everything and you will not be liquidated here if the market goes on a different way, futures are only to those who can afford the high risk of trading.

Whatever you choose in futures, the risk is higher than the spot. While in spot trading, you just have to set your order whether it's buying or selling order.
If they're filled, that's good but you have also to set yourself with stop loss and that's the same with futures because you're just trying to protect yourself from any further losses.
Don't get it wrong when you are in the spot trading, it's not a wallet that you should keep there but the actual purpose is to trade.

To make simple difference between spot trading and future trading.

Spot trading can't make your assets loss and future trading will make it losses, but most of trader prefer with future trading has positive viewed small fund easily earn much profitable with future trading get advantage leverage supported and some coins give feature more than x125. Spot trading is manually with x1 profitable and small capital in spot trading seems very difficult to earn much profit such as future trading, but remember high risk will earn high return in future trading and some one want to get lower risk have to accept with low return with spot trading.
Make your choose which one have more positive side with future trading or spot trading, I think many trader can't leave with their habit in future trading more faster earn profit than spot trading.

The main mistake of beginners is that they ignore the rules of risk management, opening positions with very high leverage, while using the entire deposit. This method of trading leads to a quick liquidation of the position. But if he opens his position with a minimum leverage of 2-3% of his deposit, then his chances of not losing the deposit will increase greatly.

Spot trading has so many advantages, and I will be telling you about some of them. If you are in spot trading, the amount of coin you are holding will never reduce, the only thing that will reduce or increase is the price of the coin you are holding. If you are holding 10 bitcoin, then it will never reduce or increase. If you are trading on stop, there is nothing like a liquidation price. Compared to if you are trading on futures, if you are holding bitcoin and the price of bitcoin is dropping, if you can just keep on holding, then the price will bounce back. You won’t be scared that you will end up getting liquidated if the bitcoin price gets to a certain price.
 
When you are trading on spot, you will always have peace of mind compared to if you are trading in futures. But the main reason why people are trading in futures is just because of the high reward. You can open a trade, and you will decide to use high leverage, which will give you a high reward, but the risk of you losing your money in the trade is also high.

The major difference between spot and futures trading are listed below:

Spot Trading: It's less riskier and your funds will not liquidated so easily in spot trading unless the coins is highly manipulative but at the same time you may expect profit but not huge profits like doubling your portfolio in a day like you get chance to do in futures trading.

Futures Trading: Highly risky and it can either make you or break you as there are chances of multiple your portfolio within a day or with just one lucky/bulls eye trade and it can also liquidate your funds in few seconds if the market goes against your bet. Even coins like Bitcoin and ETH are not safe for futures trading and people usually end up losing due to higher leverages.

There are sites like coinmarketcap and coingecko which will give you the details on liquidity of the coins. I would say stick to Bitcoin or ETH in Spot trading or DCA  and don't experiment with futures trading.

If you are just that still a noob in trading then make yourself mastered in Spot trading would be the best choice or path to take. Why? There's no chance on getting liquidated. If ever you would really be that in negative
then you could really just always opt in to hold until you would be breakeven which it is really that unlike with futures that once that you do hit up that liquidation price then its over. There's no way that you could take it back rather than on making those profitable trades. Higher leverage the higher risks that you would really be needing to face.

Coins to avoid? Always stick to those main coins that we do have in the market. Manipulation? There's no such thing as safe on this world 
This is survival of the fittest of course on which making use of different TA"s plus with those fundamentals then it would be something that will
really be that advantage compared to those who have none.

Spot trading is lessrisky and majority of the cryptos are listed on that section all you needed to do is to make research so as to pick few potential coins with future prospect and invest in it or them possibly adopting DCA buying bit by bit even as it price drops, however future trading is a different ball game meant for experience and knowledge trader because it carries a huge risk and it's a leverage trading thus account can get liquidated in a jiffy if a trade goes wrong though setting a Stop Loss would reduce the risk, future trading can also be day traded, though despite the high risk profit earned is also huge and massive depending on risk taken, however as a newbie it's better to start with spot trading.

It has been discussed several times before that in spot trading you have to do it only with your own money but in future trading you can trade using leverage and you can increase your money several times. however, there are high risks as well as advantages in this case.

Spot = Buy token with own capital only and sell them for profit
Future = Use leverage to increase your capital and take the advantage of quick profit & loss

In spot because what is happening there is actual time trading happening there, so you can get profit there. Whereas in futures, it is the opposite, and besides that, it is not recommended to conduct a futures trade for a newbie in crypto trading.

Unlike spot trading, newbies can trade immediately; for example, if they sell, they will immediately get it in their balances; unlike futures, they cannot. In addition, in a spot, even a small capital amount is possible; unlike futures, they have a minimum amount. Those are the things that are different between them.

With Leverage and Futures trading, people can trade two sides. With Spot Trading, they only can buy and wait for higher price to sell and get profit. With Leverage and Futures Tradings, they can short when the market is bearish and wait for lower price to close their position, and take profit.

People after touching Leverage and Futures Tradings will be addicted with these types and they will become more actively trading. Consequently and unfortunately, most of them will lose money because no traders can predict the market trend correctly. I am keen on Spot Trading if I want to trade, not hold. I lost a lot of money by Leverage Trading and stopped doing this long time ago.

The biggest disadvantage of spot trading is that you cannot actively trade when the market turns bearish. This type of trading is available only for margin trading. But if you are new to trading, then you should not rush to this type of trading, first gain experience in spot trading.

You have asked too many questions each with a different perspective. To answer your question of the difference between the Spot and the future trading is liquidations. In spot, there is no liquidation as you are only in loss if you sell in the loss. In spot trade, even if the coins move against you, and dump, you can still hold and only sell once the price goes above your buying price. This is not possible in future trade because if the market moves against your positions, you can face liquidation meaning your trade can end up in a total loss

Also, in future trade, you can trade both sides of the market but in the spot you can only have the long side. You cannot short the market for profits.


Well, it is always recommended to invest in bitcoin and if you want to trade altcoins, you better trade in the top 20 market cap coins. The more volume the coins have, the better it will be and less chances of scam/ rugpull or manipulation.

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.

Spot trading is easier to implement than futures trading. Future trading is done without using assets directly[1]. To find out which coins should be chosen and avoided, I tried to mention coins such as Bitcoin and several altcoins which are still in the 10 to 20 market cap lists that you can use on several sites to see market capitalization.

In my opinion, spot trading is not meant to be ordered for a long time. Set the selling price at a price that is not too large a percentage increase in price from when you bought.

[1]. coinvestasi.com

First of all, I want to mention one most important points I want to mention here is OP that trading is not for everyone, people mostly think that it's not a big deal they'll learn it and they can afford it as a primary skill. Becasue there's an emotion called patience which is not common in the common people and that why I've made this conclusion on trading for everyone.

In future and spot trading there's a major difference and even for an experienced trader I would always recommend trading in the spot market. For newbies future trading is a nemesis because the newbies will earn from 10 winning trades, and lose in a single trade. I wont say just make trades in the Bitcoin and ETH you are free to take risk in others as well but be very careful while trading in the FUture becasue Bitcoin cant offer reliability in the future market.

The profits are the same as when you buy and sell, Spot trading can make profits instantly, you can make profits in a matter of days, To be honest, I personally enjoy doing this with crypto types like Bitcoin and Ethereum, nothing else, even though there are many types of coins available.

Of course, in spot trading you need to understand and be familiar with the market and the type of crypto you want to trade. As long as I do spot trading, I never use coins other than Bitcoin and Ethereum, these two types of coins are no longer in doubt for me.

I think it would depend on your exchange because if the liquidity of a coin in that exchange is non-existent, then it's probably because of the exchange's lack of volume. You should stick to big exchanges so you won't have a problem with low-volume coins.

Spot would be best if you are less risky but want to earn money in terms of buying low and selling high.

For me, when picking a trading pair, I mostly depend on what strategy I'm going to use to trade. Like for me, the trading strategy that I have is for the long term and automated. I pick the coins that I am OKAY to HODL. Even if I buy more of the asset and lose in value, it's okay because I'm in it for the long term.

If you are going FUTURES, it's best to find the most traded one, the largest volume, so you would be sure to have the receiver of your trades but it's really risky, so be careful.

Actually both kinds of trading between spot and future have difference advantage each other but depend on your knowledge, research and analyze before trading in two kinds of platform. For spot standings your fund keep secure until how many years hold it during price dump or pump but difference with future trading, when wrong position opening such as your open short position but price of coins drastically pump you must ready with liquidation and losses all your capital.

But have advantage with future trading without waiting market have going up but also you can earn profitable when market going dump by short position opening. Small fund in future trading possibilities earn profitable in short term more than hundred percent when using maximum leverage, difficult to earn above 100% profitable with spot trading in short term and has small capital.

What are the advantages of trading in spot?
Answer: Here you can hold your token for a long time. There is no chance of liquidation here. Yes of course your token price may go down but don't lose power by getting liquidated.

It is not like futures trading. In futures trading you can be very profitable very quickly and all your money can be spent very quickly. You can always use stop loss in futures trading. It will reduce your losses. The risk in sport trading is very low, in that case, entering into future trading is very high.

I think if you have a budget above 1000 dollars then it is possible to earn $30 to $40 daily by doing Spot training.

You can think of spot trading like a stock business where you only buy and hold a coin and sell it at a profit. And you can sell instantly for profit or loss if you want. And futures trading is a type of loan trading. You can leverage up to 20x the amount you have for Altcoins and 125x for Bitcoin.  But it is very risky.  You can think of future trading as risky as gambling. so it is better not to do future trading if you are not able to take high risk

When you buy spot, you actually own the coin or token, and you can withdraw it. You also don’t pay any fees to hold it except for the buying fees at the beginning.

Futures is more for day traders. You don’t actually own any coins, it’s just a derivative of that. You also need to pay a funding fee usually every 8 hours. But the advantage is that you can leverage your money and with $1000 capital you can buy up to $100,000 worth of crypto. So if you pick the correct direction then you can make 100x more profit but on spot you are capped at 1x.

For beginnings you should stick with spot trading however.

Popular platforms often have higher liquidity volumes that vary depending on exchange, but by using an order such as limit order for sale instead of market order, I do not think that you will encounter problems with liquidity, even if it is low, but the execution of orders will be slow.

Trading altcoin contains many risks that are not related to liquidity, but rather to the difficulty of predicting the direction of the market. The lower the market value, the more difficult it is to predict and the less liquidity. Therefore, use limit order and set the selling price close to the available prices or slightly higher than them in order to be executed quickly.

There is a converter command that you can use if you want a simple exchange.

Futures trading is many times more dangerous if you are not ready for it, and for your post I can tell that you are not, so you need to avoid it or you risk getting liquidated if the market makes a movement against your prediction.

Spot trading, while still risky offers you way better chances to profit from your preferred assets, obviously you have no way to know this will be the case for sure, but at least you will have some chances to succeed, unlike with what it may happen with futures trading.

For me, trading in the spot market is cheaper fees than the futures market and less risk because in spot trading you only buy, no leverage, you can't short the market like the futures market.
About coins to avoid, I highly suggest trading pairs that have a high market cap or trading volume, so Bitcoin and Ethereum are the best pairs for this.

Well, I would prefer spot trading to futures, as futures trading is a very risky form of trading, as you will have what they call leverage in futures so that you could trade an amount of 1 BTC without even having the price to buy it, but of course the risk will be greater; more leverage means more risk, and it could easily wipe out your funds in your account. So if you are not an experienced trader, better settle for spot trading, as you could also hold your coins there. You can only buy coins depending on your funds in spot trading, and you have a bigger chance of earning in spot trading. I don't disregard future trading, as you could earn a lot in futures if done correctly or if you get lucky. In terms of coins, it is better to settle for known coins than new coins because new coins mean a high risk, but of course, if you invest in a new coin and it grows, then it is lucky for you.

When you are doing trade on the spot market, if within a certain time the price of the coin suddenly falls, it doesn't mean that you immediately lose your assets. It's just that the value has decreased. As long as you are still holding the coin, the amount will remain the same, if you continue holding and one day the coin rises again, then its value will follow the real rate on the market. So, don't panic easily when the value of your assets suddenly decreases when prices are dropping. Because, as long as the coins you take still have volume and are not delisted in the exchange, then your assets are still safe, you just have to wait for the coins to rise again.

However, this is quite tricky, because sometimes there are coins that when they go down, they will go down continuously and in the end they can no longer rise again. So over time, your assets will actually have little value and even if they are delisted from the exchange, it means your investment has failed.

For this reason, avoid various coins that are hyped, or in this case the coins that have skyrocketed hundreds or even thousands of percent on the exchange, because this will be quite risky if you buy them.

Choose only the top coins by diversifying, not going all in on 1 coin. I agree with some of the members here, use Coin Market Cap or CoinGecko to check top coins. The main thing remains in Bitcoin, so choose Bitcoin for a relatively large percentage of assets.

Oh yeah, apart from choosing which coins are recommended, you also have to make sure that the exchange you use is a top exchange, don't use new exchanges or small exchanges whose reputation is still questionable.

Regarding future trading, for beginners, it is not recommended. Because, if you have placed a position in the future market without doing research first, then the risk of actually losing your money will be really big. Because in future trading there is a leverage system, which will also have a negative impact on your future trading results if the market changes drastically from what you placed. And this means big losses for you.

Spot trading is less risky than future trading where you will quickly swipe off your account that is why most people like trading on spot. In future trading you can empty your account if you aren't careful enough that is why most people love using spot trading, and again trading coin that reliable is much more better than trading newly list coin sometimes their volatility is uncontrollable where you could lose capital in just a very limited space of time. The best is to just look out for a better coin like btc and hodl for longer time than involving yourself with future trading.

Do you know what spoofing is? Because it does not relate to the context of your question, if you are afraid to trade in a coin that you think has lower liquidity then just confirm how much liquidity this token has, you can check it on Coinmarketcap, Coingecko, and their are plenty of other tools to confirm that, if the token is totally new and you don't see it on any of the tools then you can check their smart contract by manual way.

Like on the explorer, and the title of the post is so confusing in comparison to the post content, Well, it totally depends on you to confirm because liquidity in one's view might be enough but in your view, it might not be, so DYOR before trading either in future or spot, in current time, you should not worry about liquidity that much, all you need is proper knowledge of how to check them.

The good thing about trading in spot is that you won't be timed by the market. And that's what spiker said about not being liquidated quickly.

Because in futures, you'll get no warning when you're about to get liquidated or if you do, it's all done and gone. But no one can stop you from doing futures.

If you think that you're good enough and you can gamble with it then try it. Just remember the tips that movements there are quicker and more pressing.

the advantage of spot is that if you buy 1BTC and the price of BTC dives to $45k, your BTC will still be 1BTC.  that's the advantage of spot.

if you are looking to avoid coins based on liquidity then you may not be able to remove any variables for you will avoid them all. i think what you would want to know is which one is best to invest in and trade. look into the support and resistance in the chart and verify it on the order book because it's where the prices fluctuate.

You won't get easily liquidated and lose all your capital in no time at all. So if you aren't an experienced trader, stay in the spot market and don't go towards futures because that is mostly a death trap for newbies, mostly.


One tip: Don't trade every coin or token that you see in the spot market no matter how volatile they are making you feel like you can make a quick entry and a quick exit with some profit because that isn't going to happen and you will most likely be a victim of FOMO.


I'm not much of an expert, but I can suggest you to stay away from new cryptocurrencies if you are not yet able to analyze projects to understand if they have enough potential for growth or not.

The best are bitcoin and other well known coins. Be careful with altcoins. Gamble with altcoins. Hold bitcoin.

You can use site like Coingecko to look for their marketcap. The higher the marketcap the better. But know that altcoins are more manipulated, especially the low cap coins.

For future trading, know that it is riskier. Very dangerous. Learn and only use small amount of money to know about how dangerous it can be.

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?