#SpotVSFuturesStrategy Spot vs Futures Strategy

📌 Which strategy suits you in the cryptocurrency market?

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🟢 First: What is Spot Trading?

✅ Buying the asset directly and owning it (like buying BTC or BNB)

❌ You cannot profit from a decline unless you sell what you already own

📦 The asset is added to your wallet immediately

⚖️ No leverage or liquidation risk

🧠 Suitable Spot Strategy:

Long-term investment (HODL)

Buying during strong corrections

Using fundamental analysis more than technical analysis

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🔴 Second: What is Futures Trading?

✅ Profit from both upward and downward movements

✅ Leverage up to 125x on Binance

❌ You do not actually own the asset

⚠️ High liquidation risk

🧠 Suitable Futures Strategy:

Day trading or swing trading

Taking advantage of rapid market movements

Using risk management tools (Stop-Loss / Take-Profit)

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📊 Quick Comparison:

Criterion Spot Futures

Own the asset? ✅ Yes ❌ No

Profit from decline? ❌ No ✅ Yes

Liquidation risk ❌ None ⚠️ High

Use of leverage? ❌ No ✅ Yes

Best trading type Long-term investment Day trading / Swing trading