#SpotVSFuturesStrategy

Spot trading involves buying or selling cryptocurrency. Here are some key points to consider:

1- Instant transaction: Spot transactions are executed instantly at the real-time market price. This means you buy or sell the cryptocurrency at the price displayed at that exact moment.

2- Actual ownership: Spot trading is particularly suitable for investors looking to actually own the cryptocurrency. You become the legitimate owner of the digital asset you purchased.

3- Simplicity: This type of trading is generally simpler for beginners, as it does not involve complex contracts or future commitments.

Trading futures contracts and forward contracts:

speculation on price movements.

On the other hand, futures and forward contracts are types of financial derivatives that obligate parties to buy or sell an asset at an agreed price at a later date. Forward contracts have a predetermined settlement date, while futures contracts are standardized and offered by regulated exchanges. These contracts allow investors to speculate on the future price of cryptocurrencies without having to hold the underlying asset. Here are the key points to know:

1- Predetermined price: With futures and forward contracts, you agree on the buying or selling price of the cryptocurrency at a later date. This offers some predictability in an often volatile market.

2- Protection against volatility: These contracts provide a form of protection against price volatility, as the price is set in advance. This can be advantageous for investors looking to minimize risks associated with market fluctuations.

3- Speculation: Futures and forward contracts are more suitable for investors looking to speculate on price movements without necessarily holding the cryptocurrency.