What started as a mere experiment became its own asset class, backed by market indicators and markers. In the last few years, the token has started attracting retail and institutional investors. This is great news for the community as it allows the landscape to be more attuned to organic evolution.
Two primary methods of trading in the crypto landscape are futures trading and spot trading. Each offers unique benefits and even certain challenges. Therefore, a modern-day investor’s biggest and most prominent challenge is choosing the right form for themselves.
Spot vs Futures Trading
Spot trading is best suited for people who want to place short bets on the market and make quick and marginal profit. This sounds unimpressive, but it works wonders in the long run. Another important feature about spot trading is its general simplicity. You buy a token for a price and then let them go as soon as you see some profitability.
Futures trading is for someone who does not want to own any asset but still participates in the game by assuming or assessing how a token might react. Futures trading is unique as it allows participants to make a profit regardless of where the market is.
As a beginner, futures trading is a safer bet as it does not require the user to own a token but bet on what could be the outcome.
