For beginners, **spot trading** is generally considered better than futures trading. Here’s why:
### Spot Trading:
1. **Lower Risk**: In spot trading, you are buying and selling actual assets (cryptocurrencies), and you can only lose what you’ve invested.
2. **No Leverage**: Unlike futures, there’s no leverage in spot trading, meaning you don’t borrow funds to increase your position size, reducing the risk of liquidation.
3. **Simplicity**: It’s more straightforward—buy low and sell high.
4. **Less Stress**: You don’t have to worry about managing margin, liquidation prices, or sudden market crashes causing massive losses.
### Futures Trading:
1. **Higher Risk**: Futures allow you to trade with leverage, meaning you can control a larger position with less capital, but this amplifies both gains and losses.
2. **Liquidation Risk**: If the market moves against your position significantly, you could lose your entire investment.
3. **More Complex**: Futures trading involves understanding advanced concepts like margin, leverage, and contract expirations, which can be confusing for beginners.
### Conclusion:
For beginners, **spot trading** is usually the best starting point because it is easier to understand, carries less risk, and helps you learn the basics of trading without the complexities of leverage. Once you gain more experience and knowledge, you can explore futures trading if you're comfortable with higher risks.