#SpotVSFuturesStrategy Spot or Futures? Which type of trading suits you best?
In the cryptocurrency market, many people get confused between Spot trading and Futures trading. However, understanding the differences between them can make a significant difference in your financial strategy.
🔹 Spot: Buying and selling currencies directly, and actually owning the asset. If you buy 1 Bitcoin, it is fully yours. The risks are limited, but profits require a real increase in price.
🔸 Futures: Trading with contracts, without owning the asset. You can profit from both rising and falling prices, with the possibility of using leverage. However, it carries high risks, especially in cases of strong movements against your position.
If you are looking for a long-term investment, Spot is suitable. On the other hand, if you are an expert and can handle market fluctuations, Futures might be your option.
Which type do you prefer? And why?