There are several types of crypto trading that you can engage in:
- Spot Trading: This is the most common type of crypto trading. It involves buying and selling cryptocurrencies at the current market price.
- Margin Trading: Margin trading involves borrowing funds from a broker or exchange to increase your buying power. It allows you to trade with more money than you actually have in your account, but it also comes with higher risks.
- Futures Trading: Futures trading involves buying or selling a cryptocurrency at a predetermined price and time in the future. It allows traders to speculate on the price of the cryptocurrency and can be a way to hedge against price fluctuations.
- Options Trading: Options trading is a type of derivative trading that involves the buying and selling of contracts that give the holder the right, but not the obligation, to buy or sell a cryptocurrency at a specific price within a certain timeframe.
- Day Trading: Day trading involves buying and selling cryptocurrencies within a single trading day. The goal is to make a profit from the price fluctuations that occur during the day.
- Swing Trading: Swing trading involves holding a cryptocurrency for a few days to a few weeks in order to profit from short-term price fluctuations.
- Scalping: Scalping involves buying and selling cryptocurrencies within a few minutes or seconds to profit from small price movements.
Each type of crypto trading has its own benefits and risks, and it’s important to understand them before deciding which type of trading to engage in.