🟢 Crypto Trading Series – Lesson 6: Spot vs Futures Trading Explained
💰 Spot Trading:
Buying or selling crypto immediately at the current market price ⚡
You actually own the coins you buy 🪙 — they go into your wallet.
Ideal for long-term holding or HODLing 🏦.
Lower risk compared to futures; your maximum loss is the money you put in 💵.
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📈 Futures Trading:
Trading contracts that speculate on crypto price movement without owning the actual coins 📜.
Offers leverage, meaning you can trade with more than your balance to potentially increase profits ⚡.
Higher risk — both profits and losses are magnified ⚠️.
Can be used for hedging against price drops or shorting to profit in a downtrend 🔻.
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💡 Key Differences:
Spot = “I buy, I own” 🛒
Futures = “I bet on price movement” 🎯
Futures require careful management — a small price move can trigger liquidations 🚨.
Spot is safer for learning market trends, while futures is for experienced traders.
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🎯 Pro Tips:
Beginners should start with spot trading to understand the market, price charts, and trends 💎
Never use high leverage without proper risk management 🛡️
Check fees, leverage ratios, and margin requirements before opening any futures position 🧾
Keep stop losses and take profits ready to manage risk effectively ✋
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