In the ever-evolving world of crypto, traders are split into two main camps: spot traders and futures traders. While both offer unique advantages, understanding whenâand howâto use each is the key to consistent success.
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đš Spot Trading Strategy
Spot trading is straightforward: you buy and hold actual crypto. It's ideal for beginners or long-term believers in coins like BTC, ETH, or SOL.
Common Strategies:
Buy the Dip: Purchase during corrections and HODL through volatility.
DCA (Dollar-Cost Averaging): Invest a fixed amount regularly to reduce the impact of price swings.
Swing Trading: Hold for a few days or weeks, buying low and selling high based on trends.
Best for: Low-risk traders, long-term investors, and those who avoid leverage.
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đ¸ Futures Trading Strategy
Futures allow you to go long or short with leverage, making it a powerful but riskier tool. Traders can profit even when the market drops.
Popular Strategies:
Scalping: Quick trades using 3xâ10x leverage for small, rapid gains.
Trend Riding: Use moving averages and RSI to open long/short positions in line with momentum.
Hedge Spot Holdings: Use futures to protect gains on spot assets during bearish phases.
Caution: High leverage increases both potential profit and risk of liquidation.
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â Which Is Better?
There's no one-size-fits-all answer. Smart traders often combine both: using spot for long-term growth, and futures to hedge or trade volatility. Mastering both gives you maximum control and flexibility in any market.