Trading cryptocurrencies on an exchange like Binance can be exciting, but for beginners, it is full of pitfalls. One of the key choices is the decision between spot trading and futures. In this article, I will explain why spot trading is definitely better for novices, especially for BTC and ETH. I will also discuss why it is worth focusing on Bitcoin and Ethereum instead of memecoins or altcoins, and I will provide a practical example of a spot transaction with an amount of 1000 dollars.

What is the difference between spot trading and futures?

  • Spot trading: You buy actual cryptocurrencies. You pay the full amount, receive the assets in your wallet, and can hold them long or withdraw. There is no leverage – you only lose as much as you invested (at most 100% in the worst case).

  • Futures trading: These are futures contracts with leverage. You can trade positions multiple times larger than your capital (e.g., 10x). Profits are larger, but the risk is enormous – position liquidation can result in the loss of your entire deposit (and sometimes more) with a small price movement in the wrong direction.

Why is spot better for beginners?

  1. No liquidation risk: In futures, a small price drop (e.g., 5-10%) can wipe out your entire capital. In spot, the price must drop to zero to lose everything – which is extremely unlikely for BTC or ETH.

  2. Simplicity: You don’t have to worry about funding rates (fees every 8 hours), margin management, or setting stop-losses under pressure. You buy, hold, sell – that’s all.

  3. Less emotion: Futures tempt with quick profits, but often lead to overtrading and losses. Spot encourages a long-term approach (HODL).

  4. Lower fees in practice: On Binance, spot fees for regular users are 0.1%. Futures have lower base rates (0.02-0.05%), but additional costs (funding) can exceed them, especially with longer positions.

For beginners, futures are like driving a Formula 1 car without a license – exciting, but easy to crash.

Why is it better to trade spot BTC and ETH than memecoins or altcoins?

Bitcoin (BTC) and Ethereum (ETH) are the "blue chips" of cryptocurrencies – the most stable and proven assets.

  • BTC is king: It has the largest market capitalization, is considered digital gold. It always "bounces back" after drops – historically returning to new highs.

  • ETH is fundamental: It drives DeFi, NFTs, and thousands of projects. It has strong institutional support and regular network updates.

Memecoins (e.g., DOGE, SHIB, PEPE) and many altcoins are pure speculation. They can yield higher profits in a short time but can just as easily drop by 90-99% and never return. Many of them are projects without real value, pumped by hype. With BTC or ETH, you can "survive" a bear market and come out ahead in the long term. With alts, you often lose everything – "alts may not rise again."

Statistics show: most altcoins from 2021 are now worth a fraction of their former price, while BTC and ETH have repeatedly broken ATH.

A practical example of spot trading BTC with 1,000 dollars

Let's assume you buy BTC when the price is 90,000 USD (the current BTC price hovers around 90-92 thousand USD in December 2025).

  • You invest 1,000 USD.

  • Purchase fee (taker, 0.1%)

  • You buy approx. 0.01111 BTC (1,000 USD / 90,000 USD, minus fee).

The price rises to 93,600 USD (an increase of 4%).

  • The value of your BTC: 0.01111 × 93,600 ≈ 1,038 USD.

  • Sale fee (0.1%): approx. 1.04 USD.

  • Net profit: approx. 36 USD (1,038 - 1,000 - fees ≈ 36 USD, which is +3.6%).

This is a realistic, conservative example. With a larger increase (e.g., to 100,000 USD), the profit would be higher. In futures with leverage, the same move would yield a larger profit... but a 10% drop would wipe out all capital.

Tips for beginners on Binance

  1. Start with spot: Avoid futures for at least the first months/year.

  2. Focus on BTC and ETH: These are the safest assets. Buy on dips (DCA – dollar cost averaging)

  3. Don't invest more than you can afford to lose: Cryptocurrencies are volatile.

  4. Educate yourself: Read analyses, follow news (e.g., ETFs, BTC halving).

  5. Security: Enable 2FA

Spot trading in BTC and ETH is a solid way to learn and potentially make profits without extreme risks. Regards#PoradnikKrypto #polska $BTC $ETH Follow if you like it. 😎