Hello, crypto community! 👋 I often see the question: "What's the difference between a regular purchase and futures? Do they give higher margin there?" Let's break down the two main trading methods.
In simple terms:
"Buy simple" (Spot) — you immediately exchange your USDT for BTC or another coin. It goes straight to your wallet. You're the owner. Goal: wait for the price to rise and sell at a higher price.
"Buy via futures" means you enter a contract for a future asset price. You don't buy the asset itself, but place a bet on where the price will go. And here, leverage comes into play.
What do you mean by "high margin"?
It's more accurate to talk about leverage (financial leverage). It's not "free money," but a tool that multiplies your purchasing power and your risks.
A clear example:
You have 100 USDT.
In spot trading: You buy exactly 100 USDT worth of coins.
In futures (with 10x leverage): You can open a position worth 1000 USDT (your 100 USDT + 900 USDT "on loan" from the exchange).
If the price rises by 10%: Your profit is 100 USDT (10% of 1000 USDT). You've doubled your deposit! 🚀
If the price drops by 10%: Your loss is 100 USDT (10% of 1000 USDT). You lose your entire deposit. This is called liquidation.
The key thing to remember about futures:
1. Lever is a double-edged sword. It sharply increases both profits and losses.
2. Liquidation is your main enemy. With an incorrect prediction, your position will be forcibly closed, resulting in the loss of your entire collateral.
3. There is a funding rate (Funding Rate). Small fees may be charged for holding a position between market participants.
Summary:
✅ Spot trading is safer and easier to understand for beginners. You own the asset.
⚠️ Futures are a powerful professional tool for experienced traders. They allow you to earn more with less capital, but the risk of losing funds is maximized.
Tip for beginners: Start with spot trading. Understand the market. Never trade futures with high leverage using your last funds and without a strict stop-loss.
What do you use more often? Share your experience in the comments! 👇
#Binance #trading #SpotTrading. #StrategyBTCPurchase #Write2Earn