#SpotVSFuturesStrategy 🟢 Spot Trading: Safe & Long-term Strategy
Buy real, own real: Spot trading means you are buying real assets, such as BTC, ETH, or stocks.
Common strategies:
Buy and Hold (HODL): Buy when prices are low, hold for the long term.
DCA (Dollar-Cost Averaging): Buy periodically, averaging the price over time.
Light swing trading: Take advantage of short-term waves without using leverage.
Advantages: Low risk, no liquidation.
Limitations: Lower profits compared to Futures if the market rises sharply.
🔴 Futures Trading: Flexible Strategy & High Risk
Do not own the underlying asset, only trade based on price fluctuations.
Can go long (buy) or short (sell) – make profits whether the market rises or falls.
Popular strategies:
Scalping: Quick trades within the day.
Hedging: Risk protection for Spot assets.
Leverage: Use leverage of x2, x10, x50… to amplify profits – but also easy to “burn out”.
Advantages: Optimize capital, make money even when the market goes down.
Disadvantages: High risk, easy to liquidate if risk is not managed tightly.