And yes, there is a difference between spot trading and futures trading, and it's not just about leverage. Spot trading can be more related to investing and long-term (similar to buying real estate). By the way, real estate also decreases in value sometimes... And if real estate can be rented out, then spot can be deposited in Earn for interest. Futures are traded short-term, ideally up to 5 months when entering a trade and 1 hour when analyzing the trend.
So how to trade correctly on the spot?
Let's create some criteria:
1. You should have a decent amount, preferably from $1000
2. You should choose several assets, preferably (7 or more) that do not correlate with each other,... and buy them in equal shares for a total amount not exceeding 25% of the total amount you have (from $1000, this amount is $250).
3. When one of the coins falls by 50% ROI, do an additional purchase equal to the investment amount in that coin (i.e., if you bought coins for $50, buy another $50). If it rises by 50% or more, sell it and buy a new coin that has fallen the most in the market, but the total number of assets should not decrease.
4. If the money for additional purchases runs out,... sell the least fallen coin that you have and buy back the most fallen one in the market...
Isn't it simple?😀
This is one of the most popular working strategies, but be prepared to wait...
Also, as you noticed, reading "where the price will go" in spot trading is not as important as in futures trading...
