If you're just starting with cryptocurrency trading, it's wise to begin with spot trading rather than diving into the high-risk world of futures. Many influencers hype up futures trading due to its potential for quick profits, but it’s important to understand the inherent risks. Without proper risk management, even a few unfortunate trades can result in losing your entire investment.
Spot trading, on the other hand, is a safer option for newcomers. In this approach, you directly own the cryptocurrencies you purchase, and there's no danger of being liquidated in volatile market conditions. Even if the market takes a downturn, you still retain ownership of your assets and have the opportunity to recover over time. This makes spot trading a much more stable way to grow your portfolio gradually.
For those who are just beginning their crypto journey, it's recommended to focus on investing in established, reliable coins with a solid long-term outlook. Avoid engaging in high-risk strategies until you gain a better understanding of market dynamics and how to manage risks effectively. Crypto trading should be viewed as a long-term endeavor, where consistent growth and informed decision-making will yield better results than chasing short-term gains.
In conclusion, prioritize building a strong foundation with low-risk investments and patience, as the crypto market offers ample opportunities for growth without the need for taking extreme risks. Think of crypto trading as a marathon,
