Day 6:
Where do I put my money if the market is falling?
Spot or Futures? When is each one convenient in a bearish market?
Hello, Good Morning Financial Traders!
We already know how to analyze and put a SHORT, but today we are going to answer the million-dollar question: In which market should I operate today?
It's not the same to want to accumulate a currency for the future, as to want to take a slice from a quick drop of $BTC o $SOL
Here are the key differences for you to decide your side:
Spot Market (Buy and Hold):
*How it works: You buy the actual coin. You only profit if the price GOES UP! 🚀
*In a downtrend: Your strategy here is DCA (Dollar Cost Averaging). Buy small amounts while the price drops to average your entry.
*Risk: Low. No liquidation. If the price drops by 50%, you still have your coins, but they are worth less temporarily.
Futures Market (Speculation):
*How it works: You don't buy the coin but a contract. You can profit if the price GOES UP (LONG) or if it GOES DOWN (SHORT).
*In a downtrend: It's the King! It lets you profit from the drop of $ETH or $BNB using leverage.
*Risk: High. If the market moves against you and you don’t use a STOP-LOSS, you could lose your entire margin on the position (liquidation).
Tip: Use Spot for the coins you love ($PEPE, $RAVE , $SIREN, ...) for the long haul.
(HODL). Dips are discounts.
Use Futures for quick trades (Intraday) where you spot a clear weakness and want to rake in 💰💰💰 while the market suffers.
QUICK POLL:
We want to know what type of Trader you are in this RED market:
Team SPOT: I'm buying the dips for the next BULL Market.
Team FUTURES: I'm taking advantage of every bounce to go SHORT!
Vote with numbers in the comments.
Tomorrow we close the strategy "THE ART OF WINNING WHEN EVERYTHING CRASHES!"
#SpotVsFuturos #BinanceSquare #WriteToEarn
Legal Disclaimer: "This is not financial advice, it's an Educational article. Trade at your own exclusive risk."