Post
Topic
Board Trading Discussion
Re: The joy of trading the spot market
by
sana54210
on 01/10/2021, 18:53:41 UTC
Spot trading is perfect for beginners who have just joined the crypto world, because spot trading is just buying at a low price and selling it at a high price, the risk is also very small. In contrast to futures trading, which can use leverage, which is faster to get big profits. But the risk of futures trading is very high, we can experience very large losses. Even I who have more than 5 years of crypto trading, when trying futures trading often experience large losses. Because futures trading is only suitable for people who do have good analytical skills and have learned a lot of things in the crypto world. If we are still often wrong in predicting market price movements, we should just focus on spot trading.
Risk is small but the losses are permanent and that is the biggest problem. A very new beginner could buy at any price and then they may sell as soon as they see it go down and that is what they are doing most of the time, they should not be doing that but they are still doing it and I have no idea why they are doing that. If they start with a long term trading then they could be making profit without touching it.

I know a bunch of places where you could make a passive income with crypto as well, like how you could buy uni token or cake token and stake them and make a profit as well. Proof of Staking and staking on DeFi are totally different things even though they look like the same thing, I would say DeFi could be something they should be trying. Or maybe play to earn these days since that is very popular.

Long story short spot is not always the best way, only if they are willing to wait for the prices to crash and sell when it goes up and do not get scared when the price goes down and sell right away.