#SpotVSFuturesStrategy
🔹 1. Spot Trading
Meaning:
You buy or sell an asset immediately ("on the spot") at the current market price.
Example: If you buy 1 BTC, it will be directly added to your wallet.
Key Features:
Actual asset is bought or sold
Full payment is required
Lower risk
No or very low leverage
Suitable for long-term investors
Example:
If Bitcoin is priced at $60,000 and you buy 1 BTC, you pay the full $60,000 and receive the Bitcoin.
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🔹 2. Futures Trading
Meaning:
You enter a contract to buy or sell an asset at a specific price in the future, but you don’t own the actual asset — you only profit or lose from price changes.
Key Features:
No real asset ownership
You can use leverage (borrowed funds) to open larger positions
Higher risk, but potential for higher rewards or losses
Suitable for short-term traders
Example:
If you use 10x leverage with $1,000, you can open a $10,000 position — but your losses (or profits) will also be magnified.
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🔸 Summary of Key Differences:
Aspect Spot Trading Futures Trading
Asset Ownership Yes No (only a contract)
Payment Full amount required Small amount with leverage
Risk Lower Higher
Leverage None or minimal Usually high
Best For Long-term investment Short-term trading
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✅ Conclusion:
If you’re a beginner, Spot trading is safer and simpler.
