#SpotVSFuturesStrategy
The difference between spot market trading strategy and futures contracts is important for any trader. In the spot market, you buy the asset directly and own it immediately, like buying Bitcoin at its current price and holding it. In the futures market, you do not own the asset but trade on price predictions, and you can profit whether the price goes up or down, but this requires a deeper understanding and high risk management due to the use of leverage.
The spot strategy is suitable for conservative investors who prefer to hold the asset for a long time. The futures strategy is suitable for active traders looking for quick profits, but they face greater risk, especially with market volatility. Understanding the difference between the two strategies is essential to choose the one that best fits your goals.
