#SpotVSFuturesStrategy
#SpotVSFuturesStrategy What strategy is being used today? 🔍
🔸 Spot: Buy and hold – real ownership, no leverage, and lower risks, great for long-term investors.
🔸 Futures: Trade contracts, with leverage – potential for high profits and quicker losses, suitable for active traders.
💡 My strategy:
– 70% Spot allocation with BTC/ETH.
– 30% allocated to Futures trading with a permanent stop-loss limit.
❓ What about you? How do you allocate your portfolio between Spot and Futures? Share your experiences below 👇
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🔁 Quick comparison (Spot vs Futures)
**Spot Trading:**
You actually own the currency (like BTC or ETH) – suitable for the long term and enthusiasts of future projects.
No leverage – lower risks and easy for beginners.
**Futures Trading:**
Trade through contracts – without direct ownership of the asset.
Provides leverage – potential for multiplied profits and losses.
Can benefit from both bull and bear markets – but requires experience and advanced risk management.
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💡 Smart Strategies
1. Accumulation (Spot) + Hedging via Futures
Buy BTC or ETH on the spot market, and enter a short position in futures to protect against a sudden drop.
2. **Arbitrage Mechanism (Price Spread)**
Take advantage of the difference between the spot price and the futures price: buy in the spot market and sell a futures contract when the spot price is lower.