#SpotVSFuturesStrategy

Comparison between Spot Trading and Futures Trading

Spot trading and futures trading are two common ways to participate in cryptocurrency markets, but they differ fundamentally. Spot trading means buying or selling the actual digital asset directly, with the aim of owning it. On the other hand, futures trading involves buying and selling contracts that represent the value of the asset, without the need to own the asset itself.

Spot trading is simpler and less risky, as there is no leverage. While futures contracts offer the opportunity to achieve greater profits using leverage, they carry much higher risks due to the possibility of liquidation. Choosing the most suitable strategy depends on your risk tolerance and investment goals.