#SpotVSFuturesStrategy Alright, so imagine Spot trading like actually buying a car – you own it, it's yours, and you can hold onto it for ages, or sell it when you feel like it. You're not borrowing money to buy it, so you can't lose more than what you put in. Strategies here are chill: just buy stuff you believe in and hold it (that's "HODL"), or try to catch bigger price swings over a few days or weeks. Risk is lower because you're not using borrowed money.
Now, Futures trading is like betting on whether the car's price will go up or down, without actually buying the car itself. You're using "leverage," which is basically borrowed money, so you can make bigger bets with less of your own cash. But – HUGE BUT – this means you can lose way more, way faster than you put in, and your "bet" can get closed automatically if the price goes against you too much. So, strategies here are super quick, like day trading, and you absolutely must have really tight "stop-losses" (pre-set limits for how much you're willing to lose) because things can go south in a blink.
Bottom line: Spot is for owning and chilling, less risky. Futures is for fast, leveraged bets, way riskier, and demands constant attention and strict limits!