#SpotVSFuturesStrategy
quick comparison of Spot vs Futures trading
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š¹ Spot Trading Strategy
Definition: Buying or selling a crypto asset for immediate delivery (you own the asset).
Strategies:
Buy and Hold (HODL): Long-term investing in strong coins like BTC, ETH.
Swing Trading: Buy low, sell high over days/weeks based on chart patterns.
Scalping: Quick trades for small profits in minutes or hours.
Arbitrage: Buying from one exchange and selling on another for profit.
Pros:
Lower risk (no leverage).
You own the asset.
Simple and beginner-friendly.
Cons:
Slower gains.
No profit on falling prices (unless stablecoins are used).
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šø Futures Trading Strategy
Definition: Speculating on price movement without owning the asset ā often with leverage.
Strategies:
Long/Short Leverage: Profit from both rising and falling markets.
Hedging: Protect spot positions from downside risk.
Grid Strategy: Auto-buy/sell orders in price range for volatile markets.
Funding Rate Arbitrage: Earning from funding payments between perpetual contracts.
Pros:
Higher potential gains.
Profit in bull or bear markets.
More tools (leverage, shorting, margin).
Cons:
High risk of liquidation.
Not suitable for beginners.
Emotional pressure increases with leverage.
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š” Pro Tip:
Many smart traders combine both:
Spot for long-term holds ā
Futures for short-term volatility
