Book Image

Zero to Hero in Cryptocurrency Trading

By : Bogdan Vaida
Book Image

Zero to Hero in Cryptocurrency Trading

By: Bogdan Vaida

Overview of this book

In today's fast-paced digital age, cryptocurrencies have emerged as a revolutionary financial asset class, capturing the attention of investors and traders worldwide. However, navigating the world of cryptocurrency trading can be overwhelming for beginners. Zero to Hero in Cryptocurrency Trading acts as a guiding light to navigate this complex realm. This comprehensive guide to cryptocurrency trading empowers you to go from a novice trader to a proficient investor by helping you implement your own trading strategy. As you progress, you’ll gain structured trading knowledge through hands-on examples and real-time scenarios, bolstered by trading psychology and money management techniques. You’ll be able to automate your manual trades with an algorithm that works even while you sleep. You’ll also benefit from interactive teaching methods, including screenshots, charts, and drawings to help decode market operations and craft your unique edge in the dynamic crypto world. As an added bonus, you’ll receive ready-to-use templates to identify useful indicators, test your strategy, and even maintain a trading journal. By the end of this book, you’ll be well-equipped to trade cryptocurrencies and automate manual trading to give you an edge in the markets.
Table of Contents (13 chapters)
9
Chapter 9: What’s Next?

Spot versus futures

A financial instrument is a contract or a document that represents a legal agreement involving monetary value. It can include assets, such as stocks and bonds, or contractual rights to receive or deliver cash, such as bank deposits, loans, and derivatives.

A spot market is a market where the financial instrument being traded is immediately delivered.

A futures market is a market where the financial instrument is being delivered at a later date. You buy (and sell) derivative contracts that represent the value of the asset.

Futures trading is typically the choice for traders, thanks to its unique advantage of enabling profits from any market direction. On the other hand, spot trading is a popular choice among investors due to its simplicity. It enables them to easily buy and hold tokens.

Here is a table with the main differences between spot and futures trading:

Spot

Futures

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