Crypto Trading subtypes
Spot Trading
Spot trading is buying and holding certain coins through a centralised exchange (CEX) or decentralised exchange (DEX) with the aim of selling at a higher price for a profit.
Futures Trading
Futures trading involves opening a leveraged position (long or short) on the price of a coin/token. - Long position: you expect the price to go up. - Short position: you expect the price to go down. - If the price moves in your favor, you make profit. If it moves against you, you face the risk of liquidation, where you could lose all your funds. - Futures trading offers higher rewards but also comes with higher risks compared to spot trading.
Tips
- Always consider risk management and have an exit strategy. - Only invest what you can afford to lose. - Happy Trading!.
