Spot trading and futures trading are distinct crypto trading methods. Spot trading involves buying or selling assets like Bitcoin at the current market price for immediate settlement, typically within T+2 days. It’s straightforward, ideal for beginners, and focuses on actual asset ownership with lower risk since there’s no leverage. However, it limits profit potential in volatile markets.
Futures trading involves contracts to buy or sell assets at a set price on a future date, allowing speculation without owning the asset. It offers leverage, amplifying gains or losses, and suits advanced traders hedging or betting on price movements.
Futures carry higher risk due to margin calls and potential liquidations but enable strategies like shorting. Spot trading suits long-term investors, while futures attract those seeking high-risk, high-reward opportunities. Both require market knowledge, but futures demand stricter risk management.