Update #24: Writing Expedition ✍️, Have Fun while Writing! Choose From Varieties Of Topics

Hello Steemians, It is another day of the writing expenditure and I'm happy to enter the contest today. Today the contest talks about crypto-related since it's Wednesday and I'm going to be sharing the little knowledge I have about crypto with you all.

Today, I want to speak a little about spot and futures trading and the pairs of trade. We know that people trade either futures or spot and then make their money and today I will explain how one can make profit from both of these trades.

Spot Trading

When you are trading spot, you will need to buy the crypto asset when the price is low and then sell it when the price is high. This means that you must have the crypto asset and then hold it and sell when the price increases.

You can also wait for the price of the asset to drop then you buy and wait for the price to go up again before you can make your sells. So in essence, trading spot means you must wait for the price to appreciate or to go up before making your profit.

Futures Trading

Trading futures is another aspect that you can make profit on both side I.e you can make profit if the price is going up and you can make profits of the price is going down.

Here what you do is just prediction to determine the direction of the price of the asset. When the price moves in your direction, then you make a lot of profits but if the price doesn't go your direction you also loss some money.

In the futures trading, there are tendencies to make profit and also make loses and that is why the stop loss and the take profit are very important. So trading this type of trade requires more skills to read and understand the market.

Crypto Piar

Always we see a pair of crypto say BTC/USDT, this pairs are known as the base token and the quota respectively. When you see this it means you are using the USDT to either buy or sell the BTC which is the base token.

The buying or selling of the base token by the quota gives you return in the quite token format I.e it gives you USDT in return.