#SpotVSFuturesStrategy :
Spot and futures trading are two distinct strategies in the crypto and financial markets. Spot trading involves the immediate exchange of assets, offering direct ownership. It suits beginners due to lower risk and no leverage. In contrast, futures trading involves contracts that speculate on asset prices, often with high leverage—offering higher profit potential but increased risk.
According to Binance, over 60% of volume in crypto comes from futures markets. Futures allow traders to profit in both rising and falling markets, yet over 70% of retail traders reportedly lose money due to leverage misuse.
Traders argue that spot is ideal for long-term investment, while futures suit short-term speculation and hedging. Experts emphasize proper risk management in futures and recommend it only for experienced traders. Both strategies demand clear goals and discipline.
