Both spot buying and selling and futures trading have their personal benefits and downsides, and it ultimately depends at the individual trader's desires, threat tolerance, and trading style.
Spot trading entails buying and promoting assets at the cutting-edge marketplace rate, and it's miles generally considered less unstable than futures buying and selling. It is a great alternative for novices who are simply starting out in trading and want to get a feel for the marketplace. However, spot trading can also be volatile, and fees can differ swiftly, so traders want a good way to manipulate their threat correctly.
Futures buying and selling, however, includes buying and selling contracts that promise to deliver an asset at a destiny date at a predetermined fee. It allows buyers to take positions on the course of an asset's price movement with out definitely owning the underlying asset. Futures trading can be extra complicated and unstable than spot trading, and it calls for more understanding and revel in. Futures buying and selling can be appropriate for buyers who have a better threat tolerance and are looking for greater superior trading techniques.
Spot trading is the best form of trading for beginners because it executes in real time and has quite less risks as compare to futures. A new trader can learn a lot from spot trading as this way of trading provides much flexibility in prices and it works as long position only. The new traders will have less losses in spot trading because even if their trades go wrong they won't get liquidated. Their capital is safe in spot trading and the profits are quite similar if leverage is not used.
Futures trading isn't for beginners because this type of trading involves many risks and a new trader can end up losing the whole capital with this kind of trading. The futures trading is best for top level traders who know the ins and outs of trading and at the same time have mastered the volatility of the market. In the futures trading a trader who is at advanced level can take profit from longing as well from shorting.
The highly recommended trading option for new traders is spot trading, futures trading, and margin trading are for advanced users only and I recommend the beginners to stay away from those types of trading activities if the want to play the game of trading safely.