Spot Trading
Spot trading is similar to buying and selling in the real world. In spot trading, purchases and sales of actual assets, such as Bitcoin or Ethereum, are made directly at the current market price. This involves a direct exchange of two (2) assets between the buyer and the seller, and immediate ownership of the assets is obtained. What you need to know.
Immediate exchange. The buyer immediately receives the actual assets.
Ownership. The buyer obtains ownership of the asset and can store it in a wallet.
Without leverage. Trading uses your own assets without applying leverage.
Futures Trading
Futures are contracts whose value depends on an underlying asset. When buying or selling a futures contract, the user does not own the underlying crypto assets. Instead, agreements are made to buy or sell assets at a predetermined price on a specific date in the future.
In the cryptocurrency futures market, it is not necessary to buy or sell the underlying assets on the delivery date. Instead, profit or loss will be based on the difference between the value of the assets at the time of purchasing the contract and their value on the delivery date or the day of selling the contract.
When should you choose spot trading?
You are a newcomer exploring cryptocurrency markets.
You want to hold cryptocurrency for the long term.
When you have no desire to take risks and worry about liquidation pressure.
Why should you choose futures trading?
You are a professional and can handle high risk.
You want to maximize profits using leverage.
You enjoy short-term trading opportunities.
Good luck!