#SpotVSFuturesStrategy
In short, Spot and Futures are two popular trading strategies in crypto, but they carry very different risks and potential returns.
Spot: This is simply buying and selling the actual asset (e.g., buying 1 BTC). You own the asset, there's no expiration date, and the main risk is price volatility. It's generally a safer option, suitable for beginners or long-term investors.
Futures: Here, you trade contracts that represent the asset's value, without actually owning the asset. The biggest difference is leverage, which allows you to trade with a much larger amount of capital than your initial margin. Profits can be huge, but the risk of liquidation is proportionally high, especially when the market moves against your prediction. Futures are suitable for experienced traders who are willing to take on high risk for quick gains.