$BTC Buying and selling cryptocurrencies for immediate delivery
- Ideal for long-term investors who believe in the growth of cryptocurrency
- Profits come from the appreciation of the cryptocurrency price
- Lower risk, but also lower potential for profits
*Futures Trading*
- Buying and selling cryptocurrency futures contracts
- Allows traders to speculate on price movements without owning the underlying cryptocurrency
- Offers greater potential for profits due to leverage, but also increases the risk of losses
- Can be used to hedge existing positions or take advantage of arbitrage opportunities
*Arbitrage Strategies*
- *Basis Arbitrage (Cash & Carry)*: buy in the spot market and sell in the futures market when the futures price is higher than the spot price
- *Long/Short Futures Strategy*: buy and sell futures contracts simultaneously to balance risk
- *Pairs Trading*: take long and short positions in two related assets to capitalize on price differences
The choice between spot and futures trading depends on your goals and risk tolerance. If you are new to the cryptocurrency market, spot trading may be a better option. If you are an experienced trader looking to maximize profits and are willing to take on more risk, futures trading may be more suitable.
