đŸ”č Spot vs. Futures – Market Types Explained

Before placing your first trade, it’s essential to understand where you’re trading. There are two major types of markets in crypto trading:

🔾 1. Spot Market:

This is where you buy or sell crypto at the current market price, and you actually own the asset.

Example:

You buy 1 BNB at $500 → It’s now yours, and you can hold it, transfer it, or sell it later.

✅ Best for beginners

✅ No liquidation risk

✅ You own real crypto

🔾 2. Futures Market:

In futures trading, you don’t buy the asset itself. Instead, you trade a contract that bets on whether the price will go up or down.

You can use leverage, which means borrowing funds to increase your trade size — but this adds risk.

Example:

You enter a futures contract predicting BTC will rise. If you're right, you earn more — but if you're wrong, you can lose your money faster.

⚠ Higher risk

⚠ Requires good risk management

⚠ Possible liquidation (losing your position completely)

📌 Which to choose?

Start with Spot trading to understand the basics safely.

Explore Futures only when you’re experienced and disciplined.

In the next part, we’ll cover order types: Market, Limit, and Stop-Limit — essential tools for every trader.

#Lesson1 #Part2 #SECETFApproval #TradingStrategyMistakes #StrategyBTCPurchase

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