đš Spot TradingâBuy Now, Own Now
* You are buying or selling a crypto asset on the spotâat the current market price.
* You take immediate ownership of the actual asset (e.g., BTC, ETH).
* Your profit or loss depends on the price movement from when you bought to when you sell.
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Example:
- You buy 1 BTC at $65,000.
- If BTC rises to $70,000, you can sell and make a $5,000 profit.
- If it drops to $60,000, you lose $5,000 (if you sell).
- đ No leverage, no expiration, simple and ideal for beginners.
đ¸ Futures TradingâPredict the Price, Not Own the Asset
* You're trading a contract that represents the future price of a crypto asset.
* You donât own the cryptoâyou're betting on whether the price will go up (long) or down (short).
* You can use leverage (e.g., 10x, 50x) to increase potential gains or losses.
* Contracts can be perpetual (no expiration) or expire at a set date.
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Example:
- You open a long position on BTC at $65,000 with 10x leverage.
- BTC goes up 10% â You gain 100% (double your money).
- BTC goes down 10% â You lose 100% (your position is liquidated).
- â ď¸ High risk, high rewardâbest for experienced traders who understand risk management.
âď¸ Quick Comparison Table
Feature Spot Trading Futures Trading
Own the asset? â
Yes â No (it' contract)
Risk levelđ˘ Lowerđ´ Higher (leverage risk)
Leverage â Not used â
Available (e.g.10x)
Expiry date? â No â
Sometimes ( unless perpetual )
Ideal for Beginners & holders Pro traders & hedgers
đĄ Summary;
* Spot Trading = Own the coin, no leverage, lower risk.
* Futures Trading = Trade price direction with leverage, higher risk.
#SpotTradingSuccess #FutureTradingSignals
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