EthereumLegendGuard
Wed Jun 05 2024
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5 answers
1238
What is the difference between contract and spot trading crypto?
Could you please elaborate on the fundamental differences between contract trading and spot trading in the realm of cryptocurrencies? I'm particularly interested in understanding how the mechanisms of each type of trading work, as well as the risks and potential rewards associated with each. Additionally, could you provide some insights into which type of trading might be more suitable for certain types of investors or trading strategies? It would be helpful if you could also discuss any regulatory considerations or limitations that might apply to either form of trading. Thank you for your assistance in clarifying these points.
Valentina
Fri May 17 2024
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6 answers
1588
Why trade futures instead of spot?
I'm curious to know, why would anyone prefer trading futures instead of spot? Spot trading seems straightforward enough, you buy and sell cryptocurrencies at the current market price. But futures trading seems more complex, with all the contract specifications and expiration dates. Could you explain the benefits of futures trading that might outweigh the simplicity of spot trading? I'm trying to understand if it's worth exploring this alternative approach to investing in cryptocurrencies. After all, isn't the goal to maximize profits while minimizing risks? So, what advantages does futures trading offer that could help me achieve this?
