#SpotVSFuturesStrategy #SpotVSFuturesStrategy
Spot and futures trading strategies cater to different risk profiles and time horizons. Spot trading involves buying or selling assets for immediate delivery, often used by long-term investors seeking to hold assets like Bitcoin or Ethereum. It’s simple and less risky, but lacks leverage. Futures trading, however, allows traders to speculate on price movements using contracts that settle at a future date. This strategy often includes leverage, enabling higher potential returns but also increased risk. Futures are ideal for short-term strategies and hedging. Choosing between spot and futures depends on market knowledge, risk tolerance, and trading goals.