#SpotVSFuturesStrategy

Spot Trading Strategy vs. Futures Contracts in Cryptocurrencies

Spot Trading:

- *Definition*: Buying or selling cryptocurrencies for immediate delivery.

- *Strategy*: Suitable for long-term investors who believe in the potential of cryptocurrencies.

- *Risks*: Lower leverage, lower risk.

Futures Trading:

- *Definition*: Contracts to buy or sell cryptocurrencies at a predetermined price on a specified date.

- *Strategy*: Ideal for traders looking to profit from price movements using leverage.

- *Risks*: Higher leverage, higher risk.

Key Differences:

- *Leverage*: Futures contracts provide higher leverage, increasing both gains and losses.

- *Settlement*: Spot trading is immediate; while futures have a future settlement date.

Choose based on your risk tolerance and understanding of the market.