#SpotVSFuturesStrategy
When it comes to crypto trading, two popular strategies are spot trading and futures trading. Let's break it down with a pair coin like BTC/USDT.
Spot Trading:
š Buy and sell BTC for immediate delivery
š Own the asset outright
š No leverage or margin calls
š Suitable for long-term investors
Futures Trading:
š Buy or sell contracts to trade BTC at a future date
š Speculate on price movements without owning the asset
š Leverage can amplify gains, but increases risk
š Suitable for experienced traders
Key differences:
š Ownership : Spot trading gives you direct ownership, while futures trading involves contracts
š Risk : Spot trading is generally less risky, while futures trading involves higher risk due to leverage
š Leverage : Futures trading allows for leverage, while spot trading does not
Which strategy works best for you? Share your thoughts!