#SpotVSFuturesStrategy

Spot and futures trading are two distinct strategies in crypto markets, each with its own risk-reward profile and use cases. Spot trading involves buying or selling the actual asset (e.g., BTC, ETH) for immediate delivery. It is ideal for long-term investors who prefer to hold and benefit from price appreciation over time. Spot traders own the underlying crypto, making it suitable for HODLing, staking, or yield farming.

In contrast, futures trading allows traders to speculate on price movements without owning the asset. Futures contracts are leveraged, enabling traders to open larger positions with smaller capital. This strategy suits short-term traders seeking to profit from volatility in both rising (long) and falling (short) markets. However, it carries higher risk due to liquidation and margin calls