SPOT VS FUTURE TRADING
In crypto trading, spot and futures strategies serve different goals. Spot trading involves buying or selling cryptocurrencies for immediate delivery. Traders own the actual asset, making it ideal for long-term holders or those seeking lower risk. Profit comes from price increases over time, and there's no leverage involved—what you buy is what you own.
Futures trading, on the other hand, allows traders to speculate on price movements without owning the asset. It involves contracts that agree to buy or sell crypto at a future date and price. This strategy enables the use of leverage, amplifying both gains and losses. Futures are ideal for short-term, high-risk, high-reward trades and for hedging against market volatility.
Spot trading is simple and secure, while futures offer advanced tools for experienced traders. Choosing between them depends on your risk tolerance, capital, and trading goals. Many professional traders combine both for balanced strategies.
