#SpotVSFuturesStrategy Spot vs Futures Trading Strategy in Crypto (BTC Example)

Spot Trading Strategy:

In spot trading, you buy BTC at the current price and hold it in your wallet. It’s a good strategy for long-term investors (HODLers) who believe in Bitcoin’s future growth. No liquidation risks, and you actually own the asset. Ideal entry: when BTC dips or during market corrections. Hold until it hits your target price.

Futures Trading Strategy:

Futures allow you to trade BTC without owning it, using leverage to maximize gains. This suits short-term traders. You can go long (buy) if you expect price to rise, or short (sell) if you expect it to drop. Use stop-loss to manage risk. Be cautious—liquidation risk is high with high leverage.

Smart Strategy: Combine both. Invest in spot for long-term growth, trade futures for short-term profits.