#SpotVSFuturesStrategy
Here's a clear breakdown of Spot vs Futures Strategy in crypto trading, including their differences, use cases, and when to choose one over the other:
⚔️ Spot vs Futures Trading – Strategy Guide
Feature Spot Trading Futures Trading
Ownership You own the actual crypto You trade contracts (no asset ownership)
Use Case Long-term holding, simple investing Short/long trades, leverage, hedging
Leverage ❌ Not available ✅ Up to 100x (varies by exchange/coin)
Risk Level Lower (no liquidation) Higher (liquidation risk)
Profit Strategy Buy low, sell high Profit from both rising and falling prices
HODLing? ✅ Ideal for HODLing ❌ Not for long-term storage
Fees Low (especially on DEXs) Higher (funding rates, liquidation, etc.)
🧠 When to Use Each Strategy
📘 Spot Strategy
Best for beginners
Accumulate coins over time (dollar-cost averaging)
Ideal in bull markets or for long-term believers in a coin (like $ETH , $BTC )
📕 Futures Strategy
Use when expecting short-term volatility
Trade with leverage to amplify gains (or losses)
Great for hedging existing spot holdings
Requires strict risk management
✅ Example Combo Strategy
Buy ETH Spot at $3,000 for long-term hold
Open ETH short futures at $3,100 to hedge in case of pullback
If price drops, futures gain covers spot losses
If price rises, you profit on spot while closing short at a controlled loss