Post
Topic
Board Trading Discussion
Re: Basic Types of Trading
by
Cling18
on 22/10/2021, 11:51:06 UTC
There are basically two types of trading on binance generally (SPOT trading and FUTURES trading

📌 Spot Trading: you buy any coin of your choice at any given rate, you HODL for it to rise higher, you sell at any point you feel it has risen enough

📌 FUTURES trading: you predict whether a particular coin is going to rise of fall in price, if it goes in the opposite direction from your prediction, you lose your money, and your coin

Note: In SPOT trading, you can never lose your coin, the worth of your coin can only reduce but your coin remains to rise again in worth when the market goes green.

Both have tasks especially for newbies but I find futures riskier especially if you aren't well informed about the capability of your coin. Holding would be better for beginners so they would know how to deal with the changes in the market and they could switch to futures when they completely know how to apply at least the basic strategies of trading.