📊 #SpotVSFutureStrategy — What’s the Difference?
Understanding the core distinction between Spot Trading & Futures Trading is crucial for every crypto trader. Here’s the breakdown 👇
🔑 Key Differences:
• Ownership:
Spot = Own the asset ✅
Futures = Trade contracts ❌
• Leverage:
Spot = No leverage
Futures = High leverage = High risk/reward
• Risk Level:
Spot = Lower risk
Futures = Higher risk (possible liquidation)
📈 When to Use Each:
🔹 Spot Trading (Best for Beginners):
• Buy & hold long-term
• Avoid margin calls
• Dollar-cost averaging (DCA)
🔹 Futures Trading (For Pros):
• Hedge your positions
• Speculate on short-term moves
• Use leverage (with caution)
🎯 Choose based on:
Your goals 🔥 Risk appetite 📉 Market knowledge 💡