#SpotVSFuturesStrategy Spot Trading

Pros:

Simple to understand

Lower risk

Long-term investing

You can use/stake assets (in crypto)

Cons:

Can’t short the market

Requires full capital

Profits only in uptrend

🔹 Futures Trading

Pros:

Profit in bull or bear markets

Leverage boosts gains (and losses)

Ideal for short-term trading

Useful for hedging

Cons:

High risk of liquidation

Requires active monitoring

Complexity (funding rates, margin, etc).

If you’re a long-term investor or want to own your assets: 👉 Go with Spot Trading.

If you’re a skilled trader, want to hedge risk or profit in volatile markets: 👉 Futures might suit you.

Spot trading example:

If you buy 1 BTC at $60,000, you own that BTC. If the price increases to $65,000, you’ve made $5,000 profit (before fees).

Future trading example:You open a 10x long position on BTC when it’s at $60,000. You only need $6,000 margin. If BTC goes to $66,000 (10% gain), you profit 100% ($6,000). If it drops 10%, you lose your margin (liquidated).