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Details: ht
Basics of Cryptocurrency Trading: What Do You Need to Know?
Understanding the types of trading on Gate: spot, margin, and futures.
Each type of trading on the Gate cryptocurrency exchange has its own characteristics. Let's take a closer look at them:
Spot Trading
In spot trading, you buy cryptocurrency at the current market price. This is the simplest way to enter the market, but without using leverage.
Margin Trading
Here, traders can use leverage to increase potential profits, but the risks also increase.
Futures Trading
Futures are contracts to buy or sell an asset at a predetermined price in the future. They allow for opening both long ( positions on rising ) and short ( positions on falling ) with high leverage.
| Type of Trading | When to Use | |--------------|---------------------| | Spot | For long-term investments and risk minimization | | Futures | For aggressive strategies or hedging positions |
Beginner traders are advised to start with spot trading to get accustomed to market volatility. Then, they can move on to margin trading. Futures should only be approached when there is a complete understanding of the associated risks.