#SpotVSFuturesStrategy Both spot and futures trading are popular in crypto and traditional markets, but they have distinct characteristics that influence trading strategies. 

Spot Trading 

Buying/selling assets e.g BTC, ETH) for immediate delivery at the current market price. 

Pros: 

✅ Simple & straightforward (buy low, sell high) 

✅ No expiry or leverage lower risk 

✅ Ownership of the asset can withdraw to wallet

Cons:

Limited profit potential only profits if price rises

No shorting unless margin trading is available

Spot Trading Strategies: 

Buy & Hold HODL – Long-term investment in strong assets. 

Dollar-Cost Averaging DCA – Regular buys to reduce volatility impact. 

Swing Trading – Capitalizing on short-to-medium-term trends. 

Arbitrage – Exploiting price differences across exchanges. 

Futures Trading 

Definition: Trading contracts to buy/sell an asset at a predetermined future price with leverage. 

Pros:

Leverage amplifies gains, e.g., 10x-100x

Short Selling (profit from price drops

Hedging (protect spot positions from downsides 

Cons: 

❌ High risk (liquidation possible if market moves against you) 

❌ Funding fees (for perpetual contracts) 

❌ Complexity (requires risk management)