(TIPS TO ALWAYS HAVE AN ADVANTAGE AND WIN THE FUTURE)
What is futures betting, what are the risks and profits, and is it easy to bet? These are questions that most traders who are just starting out have to learn about. If you are new to the financial market, this is the article for you.
👉Let's find out:
Spot Trading and Futures Trading with Cryptocurrencies - What's the Difference?
What is Future trading?
Future is a type of futures contract that allows placing orders to speculate on the price (increase or decrease) of a currency in the future without directly owning those coins, within a certain period of time. What is attractive here is the ability to predict and place orders according to the price movement of a currency, allowing you to make profits in both bullish and bearish markets.
If you expect the value of an asset to increase, you will buy a futures contract to go long (buy), and if you expect it to decrease, you will short (sell). The possibility of profit or loss will depend on the results of your prediction.
Advantages: Binance offers traders many different leverage options, with a maximum ratio of up to x125. This opens up opportunities for Traders to achieve attractive profits even when the market fluctuates slightly. (When using leverage, you can borrow capital from the floor to get higher returns
Defect
The higher the leverage, the greater the risk. For new investors, playing Futures can easily lead to losses and even account liquidation.)
What is Spot Trading with Cryptocurrency?
Cryptocurrency Spot Trading is the process of buying and selling digital assets such as Bitcoin and Ethereum with instant payouts when buying or selling. In other words, cryptocurrencies are circulated directly between market participants (buyers and sellers). In the spot market you have direct ownership of cryptocurrency and enjoy legal rights such as voting for major forks or participating in staking.
Exchanges like Binance facilitate spot trading activities, allowing users to make cash-to-crypto or crypto-to-fiat transactions. Spot exchanges act as an intermediary platform for buyers and sellers to set bid and ask prices for the crypto assets they want. When a sell or buy price is matched, the exchange will immediately execute the transaction. Spot exchanges operate 24 hours a day / 7 days a week, allowing users to buy and sell cryptocurrency at any time on any day.
THE FUNDAMENTAL DIFFERENCE
1. Leverage - Traders are attracted to the futures market because of the leverage factor. Leverage makes futures trading extremely capital efficient.
2. Flexibility to go Long or Short - When you buy Bitcoin on the spot market, you only make a profit if the price increases. However, in a bear market, it will be difficult for you to make a profit. Futures contracts allow you to profit from short-term price movements regardless of which direction the market moves. Even if Bitcoin price drops
3. Liquidity - The futures market offers deep liquidity with trillions of USD in monthly volume.
Tips for trading futures for newbies: You need to see whether it is increasing or decreasing to have a direction to enter the order
Suppose you trade $LISTA coin:
Lowest price in 24 hours: 0.6918, please use limit mode: set long or short at this price or move 100 points to go long, when you have entered an order to set TP (take loss or take profit point, let's say 0.6500 and 0.9000 for example) short orders are similar at the 24h highest price mark because any candle cannot increase or decrease forever. It will have a recovery period when it drops deeply and a slight increase when it drops too much. 👉This is a form of swing trading, guys...
Wishing all investors success!
Try futures trading right here:
https://www.binance.com/vi/futures/home
#Write2Win #Futures #binance #hotTrends #Uptrend