Spot Trading Strategy
✍️You buy and own the actual asset (e.g., BTC, ETH).
✍️Profits come from price appreciation over time.
✍️ No liquidation risk (you can't get force-sold due to leverage).
✍️Best for long-term holding (HODL), dollar-cost averaging (DCA), and accumulating coins.
Popular Spot Strategies:
Buy the dip: Accumulate when price corrects.
DCA (Dollar Cost Averaging): Buy fixed amounts at intervals to smooth entry price.
Swing trading: Buy low/sell high over days/weeks without leverage.
HODL with staking: Hold coins and earn passive yield (if supported).
Futures Trading Strategy
✍️You trade contracts that represent the asset, not the asset itself.
✍️Can long or short → profit in both up and down markets.
✍️Uses leverage (e.g., 10x, 20x) → higher potential gains, but much higher risk.
✍️Watch for liquidation levels → a key risk to manage.
Popular Futures Strategies:
Scalping: Small, fast trades on 1-5 min charts.
Breakout trading: Enter on strong moves beyond key support/resistance.
Hedge spot position: E.g., short futures to protect spot holdings in a bear move.
Funding rate farming: Trade based on funding payments (e.g., if funding is positive, short, and vice versa).
Combined Spot + Futures Strategy
✍️Hold spot coins for long-term upside
✍️Trade futures to hedge or boost returns
Example:
You hold 1 BTC in spot. BTC drops → you short 1 BTC equivalent on futures to protect value. Or, you scalp futures while holding spot to generate extra income.
Key Points
Futures = high risk, suitable for experienced traders.
Spot = safer, but slower gains.
Risk management is essential (stop loss, position sizing).
Futures can liquidate your position always know your liquidation price!
