#SpotVSFuturesStrategy

Spot vs Futures Strategy: Key Differences

When trading cryptocurrencies, understanding the differences between spot and futures markets is crucial. Here are some key pointers:

- *Spot Market*: Involves buying and selling assets for immediate delivery, with ownership transferring directly.

- *Futures Market*: Involves contracts to buy or sell assets at a predetermined price on a specific date, often used for speculation or hedging.

- *Leverage*: Futures trading allows for leverage, amplifying potential gains and losses, whereas spot trading typically doesn't.

- *Risk Management*: Futures require careful risk management due to leverage and potential liquidation risks.

- *Trading Goals*: Choose spot trading for long-term holding or futures for short-term speculation and hedging.