Hello #trader
To all starters and To pro please ignore.
What is #future trading?
It is like get loan out bank by mortgaging your land or asset. Here it works like you have to mortgage your usdt and they give extra amount till 100X for your trade.
If you get profit you get profit at 100X your investment ( selection on leverage 5 till 100X).
If you lose you pay whole mortgage as part of loss.
These too risky bussiness and trade.
What is #spot trading?
It is like buying a land or stock at low price and selling at high price. At points there chances of decrease of stock price but still stock remains as your asset.
Risk is that that stock price might reduce and never go up which will be loss on you.
Similar to that you buy a token at low price and sell at high price.
Advantage of future
1. You get profit 10 to 100× your investment.
2. You can use someone's money make profit
3. There is stop profit and loss to reduce risk
Disadvantage of future
1. Very risky.
2. If you lose you lose your whole asset if keep till liquidation.
Advantage of Spot
1. Asset remains your.
2. Less risky compared to future
Disadvantage of Spot
1. Slow in profit
2. loss if the token price remains very low.
3. slow progress