#SpotVSFuturesStrategy Spot Trading

Spot trading is the simplest and most direct method to buy and sell assets. When you engage in spot trading, you buy or sell the asset at the current market price, and the asset is delivered immediately (or within a very short period, such as a day or two business days). In other words, you already own the asset.

How does it work?

Direct Buy: If you buy Bitcoin in the spot market, you pay the current price and receive the Bitcoin in your wallet immediately.

Ownership: You fully own the underlying asset. This means you can withdraw it to your private wallet, use it for payments, or even 'stake' it to earn rewards.

Liquidity: Spot markets often provide high liquidity, making it easy to enter and exit trades at prices close to market prices.

Advantages of Spot Trading:

Simplicity and Clarity: Spot trading is easy to understand and execute, making it suitable for beginners. There are no complex contracts or expiration dates.

Direct Ownership: You own the asset you purchase. This provides a greater sense of security and control.

Lower Risks (Relatively): Since you are not using leverage in spot trading, the maximum loss is the amount you invested. There are no additional liquidation risks due to market volatility.