Spot vs. futures strategy in crypto trading comes down to ownership versus leverage. Spot trading means buying actual assets—like Bitcoin or Ethereum—and holding them in your wallet. It’s ideal for long-term believers who want direct control and no liquidation risk. Futures trading, on the other hand, allows speculation on price without owning the asset. You can go long or short, use leverage, and hedge spot positions—but it comes with higher risk and potential liquidation. Many traders combine both: holding spot for stability and using futures for tactical plays. The key is balance—spot builds conviction, futures test precision. Know your risk tolerance and trade with a plan.
