#SpotVSFuturesStrategy
Spot trading involves the direct purchase and sale of cryptocurrencies at their current market price for immediate delivery. When you spot trade, you own the actual asset, like Bitcoin or Ethereum, and its value directly reflects market supply and demand. It's simpler, has lower risk due to no leverage, and is generally favored by beginners or long-term investors aiming to "buy low, sell high."
Futures trading, conversely, involves contracts to buy or sell a cryptocurrency at a predetermined price on a future date. You don't own the underlying asset directly. Futures allow for leverage, amplifying potential gains (and losses) with a smaller initial capital. This makes it higher risk but also offers opportunities for hedging and profiting from both rising and falling markets. Futures are more complex and typically suited for experienced traders.
