Types of Trading
1. Spot Trading
Most basic form of trading.
You buy a cryptocurrency and it becomes yours.
If you buy Bitcoin at a lower price and sell it later at a higher price, the difference is your profit.
2. Futures Trading
In futures, you don’t actually own the coin.
You’re trading a contract based on its price.
You can make money whether the price goes up or down.
But because it uses leverage, the risk is much higher.
3. Day Trading
All trades are opened and closed on the same day.
Traders take advantage of small price movements and don’t hold positions overnight.
4. Swing Trading
This style focuses on catching price moves over several days or weeks.
You enter a trade, wait patiently for the market to move, and exit when your target is reached.
5. Scalping
Very short-term trading.
Traders make many quick trades in minutes, aiming for small but frequent profits.
6. Position Trading
A long-term approach.
You hold assets for weeks, months, or even years, focusing on bigger trends instead of daily price changes.