Spot vs Futures Trading

Two major ways to trade crypto: Spot and Futures. Both can make money — but the strategy and risk are totally different.

🟢 Spot Trading (Simple & Safer)

1️⃣ What it is: Buying crypto and holding it in your wallet. You own the asset.

2️⃣ Risk Level: Lower. No liquidation.

3️⃣ Best For: Beginners, long-term investors, and DCA strategy.

4️⃣ Profit Method: Buy low, sell high.

5️⃣ Example: Buy 1 ETH at $2,000 → Sell at $2,500 → $500 profit.

🔴 Futures Trading (Advanced & Risky)

1️⃣ What it is: You don’t own the asset — you speculate on price (long/short).

2️⃣ Risk Level: High. Comes with leverage and liquidation risk.

3️⃣ Best For: Experienced traders with proper risk control.

4️⃣ Profit Method: Predict price up (long) or down (short), use leverage for bigger gains.

5️⃣ Example: Long 5x leverage on BTC at $60K → BTC rises to $66K → 50% profit.

🧠 Final Tip: Start with Spot. Master the basics before jumping into Futures.

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