What Are the Differences between Spot Trading and Futures Trading

What is Crypto Futures Trading?

Crypto futures are contracts that represent the value of a specific cryptocurrency. You do not own the underlying cryptocurrency when you purchase a futures contract. Instead, you own a contract under which you have agreed to buy or sell a specific cryptocurrency at a later date.

What is Crypto Spot Trading?

In the spot market, you buy and sell cryptocurrencies such as Bitcoin and Ethereum for immediate delivery. In other words, cryptocurrencies are directly transferred between market participants (buyers and sellers). In a spot market, you have direct ownership of cryptocurrencies and are entitled to economic benefits, such as voting for major forks or staking participation.