Spot and futures trading offer distinct advantages. Spot trading involves buying/selling assets at current prices for immediate delivery, ideal for short-term gains and direct ownership. Futures contracts allow traders to speculate on future prices, leveraging hedging and higher liquidity with margin trading.
A balanced strategy combines both: use spot for long-term holdings and futures for hedging or short-term speculation. Spot avoids expiry risks, while futures provide flexibility and leverage. Diversify across both to manage volatility and optimize returns. Always assess risk tolerance and market conditions before choosing a strategy.