#SpotVSFuturesStrategy 🔵 Spot Trading
What it is: You buy or sell an asset (e.g., Bitcoin, Ethereum) immediately at the current market price.
Ownership: You own the actual asset (e.g., BTC in your wallet).
Leverage: Usually no leverage (unless on margin platforms).
Risk Level: Generally lower risk than futures.
Use Case: Good for investing and holding long-term.
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🔴 Futures Trading
What it is: You agree to buy/sell an asset at a future date/price. You’re not buying the actual asset, but a contract.
Ownership: You don’t own the underlying asset.
Leverage: Often high leverage (e.g., 10x, 100x).
Risk Level: High risk, high reward – potential for liquidation.
Use Case: Better for short-term speculation, hedging, or betting on price moves (long or short).
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⚖️ Spot vs Futures Summary:
Feature Spot Trading Futures Trading
Asset Ownership Yes No
Leverage Rare Common (10x–100x)
Risk Level Lower Higher
Ideal For Long-term investors Traders/speculators
Market Type Simple Complex
Liquidation Risk No Yes$
