#SpotVSFuturesStrategy 📊 Spot vs Futures Trading – Know the Difference

Understanding the difference between Spot and Futures trading is essential for building your crypto strategy.

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🟢 Spot Trading

You buy or sell the actual asset (e.g., BTC, ETH).

• Ownership: You own the crypto

• No leverage (usually)

• Lower risk

• Best for long-term HODL or simple buys/sells

• Example: Buying 1 BTC at $68,000 means you now hold 1 BTC

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🔴 Futures Trading

You speculate on price without owning the asset.

• Use leverage (e.g., 5x, 10x, 50x)

• Higher risk, higher reward

• You can long or short

• Great for active traders and hedging

• Example: You open a 10x long BTC futures position—small price moves = big gains or losses

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⚖️ Choose Based On:

• Spot: Safer, long-term, no liquidations

• Futures: High-risk, short-term, needs skill & discipline

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💡 Tip: Beginners should stick to Spot until they fully understand risk management.