#SpotVSFuturesStrategy

Spot trading involves buying/selling assets at current market prices, making it ideal for long-term holding with lower risks. You own the actual cryptocurrency (such as BTC/USDT), making it suitable for dollar-cost averaging (DCA), building an investment portfolio, or growing returns.

In contrast, futures trading uses contracts to speculate on price direction - using leverage - without owning the asset. This type of trading allows for profit in both bull and bear markets (long/short), but it carries higher risks due to liquidation and margin calls.

The smart strategy combines both: use spot trading for stability and long-term growth, and use futures for short-term trades - with strict risk management and capital segregation.