#SpotVSFuturesStrategy

**Spot trading** involves buying/selling assets (like crypto or stocks) for immediate delivery at current prices. You own the asset directly. Profit comes from price appreciation.

**Futures trading** involves contracts to buy/sell an asset at a predetermined price on a future date. You speculate on price direction without owning the asset. Leverage amplifies both gains and losses.

**Key Strategy Differences:**

1. **Ownership & Goal:** Spot is for owning/holding long-term. Futures are for hedging risk or short-term speculation.

2. **Profit Source:** Spot profits only if the price rises. Futures profit from both rising (long) *and* falling (short) prices.

3. **Risk & Leverage:** Spot has lower inherent risk (no leverage). Futures carry high risk due to leverage and contract expiry.

**Choose Spot if:** You believe in long-term asset growth and want direct ownership with lower risk.

**Choose Futures if:** You're experienced, seek short-term gains (up or down), can manage high risk, and need hedging tools. Understand leverage before trading futures.