#binnancetournament #spottrading 📌 Spot Trading
What it is:
You buy or sell an asset (crypto, stock, gold, etc.) and own it immediately.
Key features:
You get real ownership of the asset
Payment & delivery happen instantly
No leverage (usually)
Lower risk
Good for beginners & long-term holding
Example:
You buy 1 BTC at $40,000 → You own 1 BTC in your wallet.
📌 Futures Trading
What it is:
You trade a contract to buy/sell an asset at a future price. You don’t own the actual asset.
Key features:
No real ownership
Uses leverage (e.g., 5x, 10x, 50x)
Can profit from price going up or down (long/short)
High risk & high reward
Possibility of liquidation
Example:
You open a 10x long position on BTC with $1,000 → Control $10,000 worth of BTC (but you don’t own it).
⚖️ Quick Comparison Table
Feature
Spot Trading
Futures Trading
Ownership
✅ Yes
❌ No
Leverage
❌ Usually no
✅ Yes
Risk level
Low–Medium
High
Can short sell
❌ No
✅ Yes
Liquidation
❌ No
✅ Yes
Best for
Beginners, investors
Experienced traders
🧠 Which should you choose?
Choose Spot if you want safety, simplicity, and long-term investment.
Choose Futures if you understand leverage, risk management, and want short-term trading opportunities.
How to start Spot Trading (step-by-step on Binance)
How Futures leverage works (with real profit & loss examples)
Risk management for Futures trading (how to avoid liquidation)
Which is better for beginners – Spot or Futures (detailed guide)....