Spot or futures? How to choose the right strategy?
The world of cryptocurrency trading offers many opportunities but also requires a thoughtful approach. Should you focus on the spot market, buying and selling cryptocurrency directly? Or should you take the risk and try futures trading, where you can profit from both rising and falling prices?
Choosing a strategy depends on many factors: your experience, risk tolerance, financial goals, and the time you are willing to dedicate to trading.
Spot market:
Advantages: Simplicity, transparency, lack of leverage (which reduces the risk of liquidation). Ideal for long-term investments. Disadvantages: Limited opportunities for profit in a bear market.
Futures market:
Advantages: The ability to profit from price fluctuations in both directions (Long/Short), using leverage to increase profits (but also risks). Disadvantages: High risk of liquidation, complexity for beginners, the need for constant market monitoring.
There is no universal strategy. It is important to understand the risks, diversify your portfolio, and use risk management tools.