#HODLTradingStrategy
The image presents a screenshot of a social media post discussing the differences between spot trading and futures trading in cryptocurrencies. The post is titled "#SpotVSFuturesStrategy" and features a list of key differences between the two approaches.
- *Ownership*:
- In spot trading, you directly own the underlying asset.
- In futures trading, you're trading a contract that speculates on the asset's future price.
- *Leverage*:
- Spot trading typically doesn't involve leverage.
- Futures trading allows for higher leverage, amplifying both potential profits and losses.
- *Risk Level*:
- Spot trading is generally considered lower-risk, with maximum loss limited to the initial investment.
- Futures trading carries higher risk due to leverage and potential liquidation.
- *Complexity*:
- Spot trading is straightforward and suitable for beginners.
- Futures trading is more complex and requires a deeper understanding of markets and risk.
The image provides a clear and concise comparison of spot trading and futures trading, highlighting their