#SpotVSFuturesStrategy First, to talk about futures or spot, we need to define what each market means.

Spot Market: a market where you can buy cryptocurrencies and have them in your possession. The ideal way to trade in this market is to buy when the market is in red and sell when it is in green; it depends on each person what percentage of profit they want at the end of the buy-sell.

Futures Market: here a contract for difference is made, meaning you choose a cryptocurrency and depending on the trend, you will go in that direction; you can obtain profits both when the price goes up and when it goes down. However, we have other concepts here such as margin, leverage, and margin.

Can these markets be leveraged against each other?

The answer is YES, as long as you have a defined and solid strategy, you can obtain great benefits.

Let’s put a clear example using both markets and the current situation.

$ETH is at $2550, for now, you can buy in SPOT and wait for the price to rise to sell.

Just when you sell and think the market will not rise anymore, you go to the FUTURES market and open a SHORT position on ETH (a sell order that profits as the price falls), close the position manually or with a take profit order when you think the price will not continue to drop.

In this way, profits can be obtained using both markets; although it seems easy in theory, it is not in practice. Emotional control plays a big role; sometimes analyses can be wrong, so remember to only invest money that you are willing to lose.