#HODLTradingStrategy
Spot trading and futures trading are two popular methods in the world of financial markets, especially in cryptocurrency. Spot trading involves buying or selling an asset instantly at the current market price, and the transaction is settled "on the spot." It is straightforward, suitable for beginners, and ideal for long-term investors who want to own the actual asset. On the other hand, futures trading is a more advanced strategy where traders agree to buy or sell an asset at a specific price on a future date. This allows traders to profit from both rising and falling markets using leverage, meaning they can control larger positions with less capital. However, futures carry higher risk due to price volatility and the possibility of liquidation. In short, spot trading is safer and more stable, while futures trading offers higher potential rewards but with increased risk. Understanding both helps traders choose the strategy that suits their goals and risk tolerance.