#CryptoRoundTableRemarks

Spot Trading vs. Futures Trading: Your Brief Guide!

Are you wondering about the difference between Spot Trading and Futures Trading? Here’s a quick summary to help you understand the basic differences:

Spot Trading:

You actually own the asset: When you buy, the asset (like cryptocurrency or a stock) becomes yours immediately.

Instant settlement: The transaction is completed and executed immediately.

No leverage usually: You trade with your actual funds only.

Relatively lower risks: Your loss is limited to the value of your initial investment.

Suitable for beginners and long-term investors.

Futures Trading:

You don’t own the asset: You trade a contract that represents the asset's price in the future, not the asset itself.

Settlement on a future date: The contract is executed on a specified date in the future.

Uses leverage: You can control larger trades with less money, amplifying both profits and losses.

Much higher risks: Leverage increases the likelihood of losing your entire capital.

Suitable for experienced traders and short-term speculation.

Conclusion:

If you are looking for a straightforward and less risky way to invest and own assets, Spot Trading is your choice. However, if you are an experienced trader willing to take on higher risks for the potential of greater returns, Futures Trading might be suitable for you.

I hope this summary is helpful.