#SpotVSFuturesStrategy Spot vs. Futures: Key Strategies for Trading.
Spot trading and futures trading are cornerstones in the cryptocurrency markets, but they require different strategies. In spot trading, you buy or sell the asset directly. Here, your tactics focus on fundamental and technical analysis to find optimal entry and exit points, with risk management based on the invested capital and well-defined stop-losses. Patience is crucial to take advantage of the natural movements of the market.
In futures trading, leverage is the major differentiator. You can trade with more capital than you have, aiming to capitalize on small price changes both long and short. Risk management is vital: the position size should be much smaller than in spot to avoid liquidations. A deep understanding of volatility and funding rates is essential.
In both cases, discipline and a clear trading plan are your best allies for success.