What Are the Disadvantages of Crypto Spot Trading?

[Suba]

Crypto spot trading is one of the easiest types of trading and can be done by anyone, from beginners to experts. Basically, spot trading involves simply buying/selling crypto at the current market price and using your own money or deposited capital. There's no borrowing from a broker or using margin or leverage. Therefore, if your purchased crypto falls, you only lose the amount of your invested capital.

We often trade spot on crypto exchanges, but whales and institutions trade spot over-the-counter (OTC).
There are several benefits to crypto spot trading, such as simplicity and transparency, immediate execution, and lower fees compared to options and futures trading.

However, I'd like to hear from you about the risks and disadvantages of crypto spot trading.

 

[Nomad]

I am not much into spot trading, I think spot trading has higher fees. I prefer future trading or even p2p trading.

 

[SilverLance]

In spot trading, there is no leverage. You can only make as much profit as the price moves in your favor, and you can’t borrow extra funds to trade more than what you have.