In 6 steps you can learn the difference between #SpotVSFuturesStrategy

✅ STEP-BY-STEP GUIDE:

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1. Choose a Stable Coin Pair

Pick a crypto with high liquidity (like BTC/USDT or ETH/USDT).

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2. Buy the Coin on Spot

• Example: Buy 1 BTC at $60,000 on Spot.

• Now you own the asset and can sell anytime.

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3. Short the Same Coin on Futures

• Open a short position on BTC/USDT perpetual futures for 1 BTC.

• This balances out the price movement.

If BTC goes up, Spot gains — Futures loses (and vice versa).

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4. Collect the Funding Rate

• If the funding rate is positive, and you’re short, you receive the fee.

• Platforms like Binance, Bybit pay this every 8 hours.

• This becomes your income while being fully hedged.

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5. Monitor the Price Spread

Sometimes Spot and Futures prices differ.

• If Futures are above Spot: short Futures, buy Spot.

• If Futures are below Spot: long Futures, sell Spot.

This gives arbitrage profit when the gap closes.

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6. Exit the Trade When Profit Target or Event Hits

• Exit both positions when you achieve your funding income or a news event shifts the market.