Learning about cryptocurrency trading is really not easy. I am able to learn based in my experience and “Experience is the Best Teacher Honestly it did take time for me to understand what is all about crypto and how to make money in cryptocurrency.
I am eager to learn and to trade in crypto because it is a life changing knowledge. Aside from that I like this kind of business online because I just only need to stay at home. I am one of the lucky person because I did have the chance to learn and explore what is crypto is all about.
In this post I'm going to write an easy explanation that will help the newbies to understand easier.
I'm going to discuss @besticofinder 's article homework task :
-Explain Spot Trading and Margin Trading.
-Discuss the Advantage and Disadvantage of Spot Trading and Margin Trading.
SPOT TRADING :
This is my most favorite crypto trading it's easier than future trading. You just need to select which coin you need to choose to invest. Say for Example you choose to buy Steem at Binance. After you create the account, get verified and cash in to P2P. You are now ready to buy a Steem. Spot trading is the basic way to trade usually just buy at low price and hold and when the price is high you are ready to sell.
This is what I'm doing now I only do the Spot trading because I couldn't take the risk to trade at futures trading. Yet I'm still in the status of studying how to trade at future trading.
MARGIN TRADING :
Honestly I haven't tried the Margin trading but according to my research this is the kind of trading where you can borrow funds from another trader but in this kind of trading is also risky especially if you do not have much idea how this margin trading works. I am planning to try this and practice in less amounts when I can have extra funds to invest and afford to lose.
I do not recommend this margin trading yet for newbies like me but from time to time you will learn, and it will be easier for you to do the margin trading.
THE ADVANTAGE OF SPOT TRADING :
Spot trading is very easy and user-friendly for newbies. Even if you do not know how to read the graphs and candlesticks as long as you hold and time will come the price of the coin will become double or triple then you are earning.
THE DISADVANTAGE OF SPOT TRADING :
In spot trading you will not earn a lot unlike the Margin and futures. It will take time for you to keep holding before you will earn more.
THE ADVANTAGE OF MARGIN TRADING :
The advantage of Margin trading is opposite to Spot trading. In margin trading you can have a chance to earn more. The more you invest is the more you can take profit but be sure that if you invest it should be positive to be bullish or else you will lose your Money when its bearish.
THE DISADVANTAGE OF MARGIN TRADING :
The disadvantage of Margin trading is not suitable for newbies. You need more experience and practice before you decide to trade in margin trading. Study first more research before earning in margin trading.
If you can't afford to lose your money this is not recommended for newbies.
This is all for now I hope that it will help to all newbies to learn from this post.It's not that much but I tried my best to share what I have learned.
Thanks to @besticofinder for giving us this kind of task and for being an inspiration and motivation to
@steemcurator1 and to @steemcurator2
This is my homework task from @besticofinder's lesson 3. I'm glad that were given a task such as this.
Thank you also to all the Steem Team who initiated this new project, to @steemitblog, @steemcurator01 and to all curators who supported this project.
Thank you all for reading my post :)