The Spot and Futures Market in Cryptocurrencies.
The spot market and the futures market are fundamental pillars in cryptocurrency trading. The former allows for the immediate buying and selling of assets at the current price, while the latter consists of contracts to trade at a future date, speculating on the asset's value.
In the spot market, the transaction is direct: the asset is paid for and received immediately. It is ideal for those who wish to hold the cryptocurrency for the long term. This market can operate on regulated exchanges or through OTC (over-the-counter) transactions, where large volumes are negotiated privately. The quotation is based on the current price, called the "spot price."
On the other hand, the futures market allows one to set the price of a cryptocurrency for a future date, without the need to actually own it. This enables traders to speculate on the direction of the price, use leverage, and hedge against volatility. Platforms like Bybit offer leverage of up to x100, which amplifies both gains and risks.
Among the main differences, the following stand out:
The price (current vs. future).
The delivery date (immediate vs. contract expiration).
The leverage (limited in spot, high in futures).
The intermediaries (more common in futures).
And the fees, which vary between exchanges and types of operation.
The counterparty risk is also a relevant factor. In the regulated futures market, contracts are safer than in the OTC market. Moreover, in both markets, there are buyers, sellers, and sometimes intermediaries (like exchanges), who impose fees according to the type of order (taker or maker).
In conclusion, choosing between one or the other depends on the objectives: the spot market favors direct and long-term operations, while the futures market is more suitable for speculative and hedging strategies. The key is to understand each market well and operate responsibly.