#SpotVSFuturesStrategy

Spot and futures trading are two distinct strategies in crypto markets. Spot trading involves buying or selling assets for immediate delivery, making it ideal for long-term investors who prefer holding actual coins. It’s simple and less risky, but lacks leverage. Futures trading, on the other hand, allows traders to speculate on price movements using contracts, often with leverage, amplifying both gains and losses. It’s favored by short-term traders and those hedging risk. A balanced strategy may involve holding spot positions while using futures to hedge or capitalize on volatility. Understanding both helps traders navigate markets with flexibility and reduced risk.