🔥 Spot vs Futures Trading — Full Breakdown (CryptoRampage Style)

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🧭 1. What is Spot Trading?

📌 Definition:

You buy the actual crypto asset and it gets stored in your wallet.

🧠 Example:

You buy 1 BTC at $30,000 → That 1 BTC is yours, you own it.

You can hold it, sell it, or transfer it anytime.

✅ Key Points:

You own the coin

No expiry — hold forever

No leverage

Only Buy low – Sell high

Risk is limited to what you buy

Great for beginners

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⚔️ 2. What is Futures Trading?

📌 Definition:

You don’t own the coin, you’re just trading on its price movement using a contract.

🧠 Example:

You think BTC will go up — so you open a long futures trade.

If price rises, you earn; if it falls, you lose — even though you never actually own BTC.

You can also short — bet on price going down.

⚠️ Key Points:

You trade with a contract, not the asset

Can use leverage (2x, 5x, up to 100x)

Can go Long (Buy) or Short (Sell)

Expiry depends: some are perpetual, some weekly/monthly

High profits possible — but risk of liquidation.

#SpotVSFuturesStrategy