Hi friends, today I'm submitting my homework on spot trading and

Before we go deeper, let's understand the meaning of trading in the cryptocurrency world.

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What is trading

Cryptocurrency trading is the process of reviewing critically on cryptocurrency price changes through a CFD trading account, or also, the buying and selling of these cryptocurrency through an exchange.

When crypto users buy cryptocurrencies via any exchange, you purchase the coins themselves. Yout will also need an account in the exchange platform where you can keep and store your asset(cryptocurrencies) in the wallet, synonymous to a bank account for saving Fiat currencies.

what is spot trading.

In financial world, a spot contract, spot transaction, or simply spot, means to buy security or currency for immediate settlement (payment and delivery) on the spot date. It is an instant sell/buy method of crypto trading.

When it comes to cryptocurrencies, spot trading is the most basic and simpletype of investment you can make in order to purchase or sell your assets. Spot trading clearly means you buying cryptocurrency, just like ETH, and holding it until the value increases or using it to buy other altcoins that you believe may rise in value.

How to trade with spot trade.

(a) visit www.binance.com or use the app and log in your account, or open a new account, for new users.

(b) next click on any cryptocurrency on the home page, and go directly to the corresponding spot trading page.

(c) input amount and click on buy.

NOTE; You can repeat this same procedure when you want to sell

Now what's Margin trading

Margin trading is the process of buying crypto using borrowed money from a broker or a party for the essence of selling it again.
To buy on margin refers to using the money borrowed from a broker to purchase securities. Essentially, margin trading is a way to increase more profits by adding more risks to your trades. When you trade on margin, you trade a risky one because they can both being a win or a fail.
Trading with margin trading is very risky compared to the spot trading due to the instability of most cryptocurrencies. Cryptocurrency margin trading allows you to achieve higher potential profits by adding more risks to your trade.

Advantages of spot trading

(1). It is an accurate system which is transparent and regulated. The fear of illegal transactions can be avoided.

(2). Standard quality transaction for both buyer and seller.
(3). More quicker transactions.
(4). It is the best trading strategy for beginners which aid to manage your risk.

Disadvantage(s).

The disadvantage of spot trading is the fact that is limits your benefits in some situations. Managing these risk could be a strategical downfall itself. Because, you have limited balance in your account, and you can't take full benefits of good trading opportunities.

Advantage(s) of Margin trading.

The main advantage of margin trading is to gain more profit. With these options, trading your crypto at the perfect time can get a return on investment. And also, depending on your trading style, you can get more advantages from it.

Disadvantage(s)

Margin trading is very risky and one can lose all his assets within a second. Unlike spot trading where you can't lose more that your deposit amount, in margin trading, 100% of all your investments can evaporate instantly.

Which trading strategy is the suitable one for you?

Eventually, the choice of strategy depends upon the trader's choice. Because no one understands that more than you do. Based on your risk tolerance and knowledge of investing, you need to choose which is the right strategy for you. But on a safer side for the beginners, spot trading is best recommended.

Big thanks to @besticonfider for organizing such a wonderful and amazing contest. Hoping to participate in more contest.