🔥【Must Read for Crypto Newbies】Spot and Futures
🔥【Must Read for Crypto Newbies】How to Choose Between Spot and Futures? Understand the Difference in 3 Minutes! 💡
For those who are confused by "Spot" and "Futures" upon entering the crypto world, look here!
Today, I will clearly explain the difference between the two in the simplest way possible.
After reading, you won't be afraid of being cut like leeks anymore～
✨【What is Spot?】
👉 Simply put, it means "cash on delivery"
For example, buying 0.1 ETH for 1000 yuan
If it rises to 1500 yuan and you sell it, you make 500 yuan (transaction fees are extra)
✅ Advantages:
▪️ Risks are controllable (you can only lose your principal)
▪️ Suitable for long-term holding
▪️ Simple operation
❌ Disadvantages:
▪️ Slow profits in a bull market
▪️ Requires a larger principal
✨【What is Futures?】
👉 It's like a leveraged game of "betting on the outcome"
• 5x leverage: 1000 yuan can be used as 5000 yuan
• Going long = betting on price increase, going short = betting on price decrease
✅ Advantages:
▪️ Small funds can also participate
▪️ Can make money in both bull and bear markets
❌ Disadvantages (blood and tears warning❗):
▪️ May face liquidation (principal goes to zero)
▪️ High transaction fees
▪️ Requires constant monitoring
⚠️【Beginner's Pitfall Guide】
1️⃣ Simulate before starting
2️⃣ Never go all in with futures!
3️⃣ Set take profit and stop loss (I have suffered losses 😭)
4️⃣ Stay away from "free guidance" (99% are scams)
