#SpotVSFuturesStrategy Cryptocurrency Trading Strategies: Spot vs Futures! đ
*Spot*:
Spot trading involves buying and selling cryptocurrencies at the current market price. It is a straightforward way to trade, where you buy or sell the cryptocurrency and receive it immediately.
*Futures*:
Futures trading involves contracts that obligate the purchase or sale of a cryptocurrency at a predetermined price in the future. It is a trading method that allows speculation on the future prices of cryptocurrencies.
*Strategies*:
1. *Hedging*: Using futures to protect against potential losses in a spot position.
2. *Speculation*: Using futures to speculate on the future prices of cryptocurrencies.
3. *Arbitrage*: Buying in a spot market and selling in a futures market, or vice versa, to take advantage of price differences.
*Risks and benefits*:
Futures trading can offer greater profit opportunities, but it also involves higher risks, including the possibility of losses.