#TradingTypes101 Do you know the differences between spot trading, margin trading, and futures trading? Learn to choose the best strategy for you.

📌 Spot Trading: Involves the direct buying or selling of cryptocurrencies at the current market price. It is ideal for those seeking simplicity and lower risk, as leverage is not used, and the acquired asset is fully owned.

📌 Margin Trading: Allows trading with borrowed funds, providing leverage that can amplify both gains and losses. It is suitable for experienced traders who can manage higher risks.

📌 Futures Trading: Consists of buying or selling contracts that represent the future value of a cryptocurrency. It offers higher leverage (up to 125x on Binance), which can result in greater profits but also significant liquidation risks. It is more suited for advanced traders looking to capitalize on short-term price movements.

🎯 Which one to choose? If you are a beginner or prefer a long-term strategy, spot trading may be your best option. If you are looking for higher returns and are willing to take on more risks, consider margin or futures trading, always with proper risk management.