Spot trading is a popular way for investors to access the crypto market in a straightforward manner. It’s mainly fiat-to-crypto trading, as well as crypto-to-crypto trading. It’s simple, you get a crypto wallet, you buy a token with fiat currencies, and then once the price has increased, you sell the asset and make a profit.
Margin Trading vs Spot Trading?
Well, imagine you don’t have enough for the trade you’re looking towards leveraging. With margin trading, the trading platform allows you to open a position that is larger than the balance of your account. Essentially, this allows people, or traders to access an amount of funds to increase their order, which then effectively means they boost the gain from a profitable trade. In essence, you’ll be maximizing your potential gains, allowing you to open a larger position than you would normally allow within your account.
With margin trading, you’re effectively boosting your gains from market swings, opening up your trading horizons, and letting you, the trader, explore new trading…