#SpotVSFuturesStrategy 📊 #SpotVSFuturesStrategy – The Difference Between Spot Trading and Futures Trading

When trading cryptocurrencies or any financial assets, there are two main methods: Spot Trading and Futures Trading. Each has different strategies based on goals, experience level, and risk.

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🔹 What is Spot Trading?

It means buying the actual asset (for example: buying Bitcoin and holding it in your wallet).

You own the asset directly.

The price reflects the current market value.

There is usually no leverage.

✅ Common Spot Strategies:

1. Buy & Hold:

Buy when the price is low and hold long-term.

2. DCA (Dollar-Cost Averaging):

Buy a small amount weekly or monthly regardless of the price.

3. Swing Trading:

Entering and exiting the market over days or weeks based on technical analysis.

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🔸 What is Futures Trading?

You do not actually own the asset, but trade a contract that represents your expectation of price movement.

You can profit from both upward and downward movements (Long or Short).

It allows the use of leverage (for example: 10x, 20x).

There are expiration dates (in fixed contracts) or continuous financing (in perpetual contracts).

✅ Common Futures Strategies:

1. Long/Short Based on Trend:

Open buy or sell positions according to the overall trend.

2. Hedging:

Using futures contracts to protect your spot investment from losses.