#SpotVSFuturesStrategy
๐ต 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.
โ 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 Cons:
Profits are lower compared to futures (no leverage boost).
You canโt profit when the market goes down.
๐ด 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 donโt 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.
โ Pros:
High profit potential with leverage.
Can earn in both rising and falling markets.
Useful for short-term active trading.
โ 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!