Three ways to do spot trading and leverage operations in the cryptocurrency market

If you’re just starting out in the cryptocurrency market, you’ve probably heard about different ways to trade digital assets. In this article, we’ll explore the three main methods: spot trading, margin trading in the spot market, and futures contracts. Understanding the differences between these options is essential to choosing the right strategy for your profile and investment goals.

How spot trading works: the simplest way to trade

Spot trading is the most direct and accessible method for beginners. It works like a regular purchase in the real world: you invest your own capital, buy the asset (Bitcoin, Ethereum, or others) at the current market price, and immediately own that amount.

In this model:

• You receive the actual asset instantly, without complex intermediaries
• Ownership is yours, and you can store it in a personal wallet
• There is no leverage, meaning you can only buy with the money you actually have

If you have 100 reais, you can buy 100 reais worth of cryptocurrencies. Simple as that. That’s why spot trading is ideal for those starting from zero, with no liquidation or loan risks.

Leverage in the spot market: loans to expand your position

Now, what if you wanted to buy more assets without having all the necessary capital? That’s where margin trading in the spot market comes in.

In this mode, the platform acts like a “bank” for you. It lends additional funds so your purchase is larger than your available capital. For example: you have 10 reais but want to buy 100 reais worth of Bitcoin. With 10x leverage, you borrow 90 reais from the platform and execute your trade.

But attention: this “loan” has a cost. You pay interest on the borrowed amount and need to secure this loan with other assets you own. If the price drops too much and your collateral no longer covers the debt, the platform automatically liquidates (sells) your assets to recover the borrowed money. The maximum leverage usually allowed is 10x, an important control to protect the user.

Futures and perpetual contracts: trades with fixed or indefinite expiration

Futures contracts work completely differently. You’re not buying the actual asset. Instead, you’re making a “future agreement”: agreeing to buy or sell an asset at a predetermined price on a future date.

How to make money with futures? You don’t receive the real asset. Your gains or losses come from the price difference between when you enter and exit the trade. If Bitcoin rises from 100 to 120 reais, and you were “long” (betting on the rise), you gain 20. If you were “short” (betting on the fall), you lose.

Contracts can have two formats:

Futures contracts with expiration: They have a fixed closing date. You need to close the position before this date, or it is automatically settled. Dates range from daily to quarterly.

Perpetual contracts: They have no expiration date. You can keep the position open indefinitely as long as you maintain the required margin. This flexibility is useful for long-term strategies but requires more discipline.

The main feature of futures is extreme leverage: you can reach from 25x to 125x leverage (depending on the trading pair). This means controlling large positions with little capital. A Bitcoin with a 50 reais margin? Possible. But remember: higher leverage means higher liquidation risk.

Futures also allow “short” operations (betting on a decline). While spot trading only profits from upward movement, futures let you profit in both rising and falling markets. That’s why they are popular for hedging (risk protection) and short-term speculation.

Practical comparison: choosing your trading method

Now that you know the three, let’s compare side by side:

Which to choose? A guide for different profiles

If you’re a beginner seeking safety: Start with spot trading. You learn how the market works, there’s no surprise liquidation risk, and you can sleep peacefully knowing you own what you bought.

If you want to increase gains and are willing to learn more: Try margin trading in the spot market with low leverage (2x or 3x). Monitor your positions regularly and set loss limits.

If you’re experienced and want to profit in any market: Futures are your domain. Use them for short-term speculation or hedging to protect larger portfolios. Start with conservative leverage (10x to 20x) before jumping to extreme levels.

In summary: spot trading is your entry point, margin in spot expands potential with moderate risk, and futures offer maximum flexibility and maximum risk. Choose according to your experience, available capital, and risk tolerance.