#SpotVSFuturesStrategy SpotVSFuturesStrategy

spot trading involves buying a cryptocurrency and becoming its actual owner. You hold the asset and can later sell it to either cash out or exchange it for another coin.

Futures trading, on the other hand, is purely speculative. You don't own the underlying asset—instead, you're trading contracts based on its price. This often involves leverage, meaning you borrow funds to increase your position. While this can amplify gains, it also increases risk significantly. A wrong move can lead to liquidation and potential losses, especially due to interest on borrowed amounts.

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