#SpotVSFuturesStrategy
#SpotVSFuturesStrategy – A Short Note
#SpotVSFuturesStrategy highlights the comparison and trading approach between the spot market and the futures market in cryptocurrency or traditional assets.
Spot Trading involves buying or selling an asset for immediate delivery. It is straightforward, with traders owning the actual asset (e.g., Bitcoin).
Futures Trading involves contracts to buy or sell an asset at a future date and price. It allows for leverage, hedging, and speculation without owning the asset directly.
A good strategy compares risk, reward, and market conditions. Spot trading suits long-term holders, while futures trading is preferred by short-term traders aiming to profit from volatility — though it comes with higher risk. Combining both can offer balanced exposure and risk management.