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What is the difference between crypto spot trading and futures trading on tradingview?

avatarSerenityDec 16, 2021 · 3 years ago3 answers

Can you explain the key differences between crypto spot trading and futures trading on tradingview? I'm new to the cryptocurrency market and I want to understand the different trading options available. What are the advantages and disadvantages of each? How do they work on tradingview? Are there any specific strategies or indicators that are more suitable for one type of trading over the other?

What is the difference between crypto spot trading and futures trading on tradingview?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Crypto spot trading refers to buying or selling cryptocurrencies at the current market price. It involves the immediate exchange of digital assets and is settled in real-time. On the other hand, futures trading allows traders to speculate on the future price of a cryptocurrency without actually owning it. It involves entering into a contract to buy or sell a specific amount of the cryptocurrency at a predetermined price and date in the future. Spot trading offers more liquidity and immediate access to the assets, while futures trading allows for leverage and the potential for higher profits. Tradingview is a popular platform that provides charts, indicators, and tools for both spot and futures trading, allowing traders to analyze the market and execute trades. It's important to note that futures trading carries higher risks due to leverage and the possibility of losing more than the initial investment. Traders should carefully consider their risk tolerance and trading strategies before engaging in futures trading on tradingview.
  • avatarDec 16, 2021 · 3 years ago
    Spot trading is like buying and selling cryptocurrencies in real-time, just like you would with stocks. You own the actual coins and can use them for transactions or hold them as an investment. Futures trading, on the other hand, is more like making a bet on the future price of a cryptocurrency. You don't actually own the coins, but you're speculating on whether the price will go up or down. Tradingview is a great platform for both types of trading, as it provides real-time charts, technical analysis tools, and a community of traders to learn from. Spot trading is generally considered less risky, as you're dealing with actual assets, but it also has lower potential returns. Futures trading can be more profitable if you make the right predictions, but it's also riskier and requires a good understanding of market trends and indicators. It's important to do your research and start with small investments to gain experience before diving into futures trading.
  • avatarDec 16, 2021 · 3 years ago
    Spot trading and futures trading are two different ways to trade cryptocurrencies on tradingview. Spot trading involves buying or selling cryptocurrencies at the current market price, while futures trading allows traders to speculate on the future price of a cryptocurrency without actually owning it. Spot trading is more straightforward and suitable for those who want to own the actual coins and use them for transactions or long-term investments. On the other hand, futures trading offers the opportunity to profit from price movements without the need to own the underlying asset. It allows traders to use leverage, which can amplify both profits and losses. Tradingview provides a user-friendly interface for both spot and futures trading, with a wide range of technical analysis tools and indicators. Traders can use various strategies and indicators to analyze the market and make informed trading decisions. It's important to note that futures trading carries higher risks due to leverage and the potential for significant losses. Traders should carefully consider their risk tolerance and trading experience before engaging in futures trading on tradingview.