#SpotVSFuturesStrategy

๐Ÿ”ต Spot Trading Strategy

What is it?

You buy or sell crypto at the current market price โ€” you actually own the asset.

Common Strategies:

Buy & Hold (HODL): Buy quality coins and hold them for the long term.

Support & Resistance Trading: Buy near support, sell near resistance.

DCA (Dollar Cost Averaging): Invest small amounts regularly to average your entry price.

โœ… Pros:

You use your actual capital (no leverage).

Lower risk โ€” you can only lose what you invest.

Ideal for beginners and long-term holders.

โŒ Cons:

Profits are lower compared to futures (no leverage boost).

You canโ€™t profit when the market goes down.

๐Ÿ”ด Futures Trading Strategy

What is it?

You trade based on the future price of a coin, with the option to use leverage (borrowed money). You donโ€™t own the coin โ€” you speculate.

Common Strategies:

Trend Trading: Go Long in uptrend, Short in downtrend.

Scalping: Quick, small trades to capture tiny moves.

Breakout Trading: Trade when the price breaks support or resistance.

โœ… Pros:

High profit potential with leverage.

Can earn in both rising and falling markets.

Useful for short-term active trading.

โŒ Cons:

High risk โ€” leverage can multiply losses.

Not beginner-friendly โ€” needs good risk management.

Can lose more than your initial margin if you're not careful.

Let me know if you want a comparison table or want to learn when to choose Spot vs Futures!