The difference between spot and contract, this is for novices
1. Spot trading:
Just like buying goods at ordinary times, you give him money and he gives you goods. For example, if you spend 5,000 yuan to buy a coin, then you own this coin, you can transfer this coin to your own wallet, or give it to others.
Advantages: The coin you buy belongs to you, no matter whether the price rises or falls, the coin you bought is always
Disadvantages: Only when the price of the coin rises can you make a profit
2. Contract trading:
Contract trading is to use a small amount of funds to trade several times the original amount, and the gains and losses will increase with it. For example, if you can buy 1 BTC, then you can buy 10 with a leverage of 10 times!
The advantage of contract trading is that it can trade in both directions, and you can make a profit regardless of whether it rises or falls, provided that you can grasp the direction, but the risk and profit are the same. Therefore, novice Xiaobai does not recommend contract trading, rationally distinguish the risks of various transactions, and carefully choose the trading method that suits you according to your own tolerance!
