#SpotVSFuturesStrategy
✅ Spot Trading:
You buy/sell the actual asset (e.g., BTC, ETH, stocks).
Ownership is immediate.
Used for long-term holding or direct transfer of assets.
No leverage (usually).
📈 Futures Trading:
You speculate on the price movement without owning the asset.
Often leveraged, allowing higher profits (and risks).
Ideal for hedging or short-term speculation.
Includes expiry dates (unless perpetual futures).
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💡 Spot vs Futures Strategy Ideas:
1. Arbitrage Strategy
Buy on spot and short in futures when futures are overvalued.
Lock in risk-free profit (known as cash-and-carry arbitrage).
Works well when there's a premium on futures contracts.
2. Hedging Long-Term Holdings
Hold crypto (e.g., BTC) on spot, and short futures to protect against downside.
Useful in bear markets or during uncertain news events.$BTC