#SpotVSFuturesStrategy

Spot vs Futures trading offers two distinct strategies in crypto. Spot trading involves buying assets outright and holding them, ideal for long-term investors avoiding liquidation risks. It’s straightforward—own the coin, wait for price appreciation. In contrast, futures trading allows leverage, letting traders speculate on price movements without owning the asset. While futures offer higher potential returns, they carry significant risk, especially in volatile markets. Liquidation and funding fees are key concerns. A smart strategy often combines both: using spot for stable growth and futures for short-term profits. Risk management is crucial—set stop-losses, diversify positions, and never overleverage. Know your goals.