#SpotVSFuturesStrategy

**Spot vs. Futures Trading Strategy**

**Spot Trading:** You buy assets (like Bitcoin) directly at current market prices. Best for long-term holding (“HODLing”) since you actually own the asset. No leverage means lower risk of liquidation. Ideal if you expect steady growth.

**Futures Trading:** You trade contracts that speculate on price movements without owning the asset. Futures offer leverage (e.g., 10x), magnifying profits *and* losses. Suitable for short-term strategies: scalping, hedging, or swing trading. Futures let you profit in both rising and falling markets via long or short positions.

**Strategy Tip:** Beginners often start with spot to learn market dynamics. Once confident, you can cautiously add futures positions, always using stop-losses to control risk. Never over-leverage. Combining both can balance long-term growth (spot) with active trading opportunities (futures).