#SpotVSFuturesStrategy

Spot vs Futures Trading

Spot trading involves buying or selling an asset like Bitcoin at its current market price, with immediate settlement. You own the actual cryptocurrency, and it's stored in your wallet. In contrast, futures trading is a contract-based method where you agree to buy or sell at a future date and price. With futures, you don’t own the asset but speculate on its price movement, often using leverage to maximize gains or losses. Spot trading is safer for beginners, while futures offer higher risk and reward. Both play important roles in crypto markets, depending on the trader’s strategy and risk tolerance.