When it comes to trading crypto, understanding the difference between spot and futures strategies is crucial. Spot trading is straightforward—you buy a crypto asset and hold it in your wallet. It's great for long-term investors who prefer less risk and want to build wealth slowly.
Futures trading, on the other hand, allows traders to speculate on price movements without owning the actual asset. It’s powerful because of leverage, but that also increases risk. A small mistake can lead to big losses if you're not careful.
Personally, I use spot for long-term holds like BTC and ETH, while I explore futures for short-term strategies using low leverage and strict stop-loss rules. Managing risk is key in futures, while patience pays off in spot trading.
Knowing when and how to use each can make a big difference in your success as a trader.
