#SpotVSFuturesStrategy 1- Spot Trading: Spot trading involves buying or selling a cryptocurrency for immediate delivery. It is a straightforward, lower-risk method suitable for beginners. However, it requires a full upfront payment and exposes traders to short-term market volatility.
2-Futures Trading: Futures trading involves buying or selling a contract to trade a specific amount of cryptocurrency at a predetermined price in the future. It is more complex and carries a higher risk due to the use of leverage, but it offers the potential for significant profits. It is suitable for experienced traders who have a good understanding of the market.
3-Spot Price and Futures Price: The spot price is the current price at which a cryptocurrency can be bought or sold for immediate delivery. The futures price is the price at which the cryptocurrency can be bought or sold for delivery at a future date. The relationship between these two prices can provide insights into market expectations.
4-Risk Management: Regardless of the trading method, managing risks is essential. You can achieve this by diversifying your portfolio, using risk management tools, and never investing more than you can afford to lose.