#SpotVSFuturesStrategy Crypto trading has two main paths with very different strategies: Spot and Futures.
Spot trading means you buy and own the crypto asset in reality. The strategy is simple, which is "buy low, sell high," and is suitable for long-term investment (HODL) or swing trading. Because the risks are more controlled and there is no threat of forced liquidation, Spot is an ideal starting point and highly recommended for beginners.
On the other hand, Futures trading is the activity of speculating on price movements through a contract, without owning the asset. Its advantage is the ability to profit when the market goes down (through short selling) and the use of leverage to multiply potential profits.
However, leverage is also a double-edged sword that amplifies losses and brings the risk of liquidation, where you can lose your entire capital in an instant. Therefore, futures are more suitable for experienced traders who have mastered risk management.
In short, start with Spot to learn and build a foundation, then consider Futures after you are truly skilled.
