#SpotVSFuturesStrategy Spot Trading vs Futures Contracts in Cryptocurrency

Spot Trading:

- *Definition*: Buying or selling cryptocurrency for immediate delivery.

- *Strategy*: Suitable for long-term investors who believe in the potential of cryptocurrency.

- *Risk*: Lower leverage, lower risk.

Futures Trading:

- *Definition*: A contract to buy or sell cryptocurrency at a predetermined price on a specific date.

- *Strategy*: Ideal for traders looking to profit from price movements using leverage.

- *Risk*: Higher leverage, higher risk.

Key Differences:

- *Leverage*: Futures contracts offer higher leverage, which increases both profits and losses.

- *Settlement*: Spot trading is done immediately; whereas futures contracts have a future settlement date.

Choose based on your ability to bear risk and your understanding of the market.