Spot vs. Futures Trading: Key Strategies & Differences

Spot trading involves buying and selling assets for immediate delivery. Popular strategies include:Day Trading: Capitalizing on short-term price movements within a day.Swing Trading: Holding assets for days to capture larger price swings.Long-Term Holding: Buying and holding assets for extended periods to benefit from gradual growth.Futures trading, on the other hand, involves contracts to buy or sell assets at a future date. Key strategies include:Hedging: Protecting spot investments from price volatility.Speculation: Taking positions based on future price predictions.Arbitrage: Exploiting price differences between spot and futures markets.For example, the "Guggenheim Managed Futures Strategy" aims for absolute returns through a diversified futures portfolio. In crypto, spot trading is straightforward, while futures offer leverage and more complex strategies. Which do you prefer? #SpotVSFuturesStrategy