#SpotVSFuturesStrategy *#SpotVSFuturesStrategy* compares two major crypto trading approaches: *Spot trading* (buy/sell real assets) vs *Futures trading* (contracts based on price speculation).
⚔️ Key Differences:
| Aspect | Spot Trading | Futures Trading |
|------------------|-------------------------------------|--------------------------------------|
| Asset Ownership | You own the actual crypto | No ownership—just price contracts |
| Leverage | No or low leverage | High leverage (e.g., 10x–100x) |
| Risk Level | Lower (no liquidation) | Higher (liquidation risk) |
| Strategy Horizon | Mid-to-long-term (HODLing, DCA) | Short-term (scalping, swing, hedge) |
| Costs | Trading fees only | Fees + funding rates + risk of loss |
✅ Spot Strategy Examples:
- *DCA (Dollar-Cost Averaging)*
- *Buy & Hold*
- *Swing trades on major support/resistance*
⚡ Futures Strategy Examples:
- *Scalping intraday moves*
- *Hedging spot exposure*
- *Taking advantage of volatility with leverage*
Which to Choose?
- Use *spot* if you're risk-averse or investing long-term.
- Use *futures* if you're experienced, want leverage, or need to hedge.