#SpotVSFuturesStrategy 🟢 Spot Trading: Safe & Long-term Strategy
Real Purchase, Real Ownership: Spot trading means you are buying real assets, like 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, average the price over time.
Light Swing Trading: Take advantage of short-term trends without using leverage.
Advantages: Low risk, no liquidation.
Disadvantages: 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) – profit whether the market goes up or down.
Popular Strategies:
Scalping: Quick day trading.
Hedging: Risk management 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, easily liquidated if risk is not managed tightly.
