š Spot vs Futures Trading Strategy ā Which Oneās Right for You? š¹
When it comes to crypto trading, understanding the difference between spot and futures strategies is key.
Spot trading involves buying or selling crypto assets for immediate delivery. Itās simple and ideal for long-term holders (HODLers) who want to own the actual asset. You buy low, sell highāno leverage, no expiry.
Futures trading, on the other hand, lets you speculate on price movements without owning the asset. You can go long or short and use leverage to amplify gains (or losses). Itās a powerful tool for experienced traders looking to hedge, profit in bear markets, or maximize capital efficiency.
Strategy tip:
⢠Use spot if you believe in the long-term potential of a coin.
⢠Use futures for short-term opportunities or hedgingābut with strict risk management.
Both have their pros and cons. Know your goals, manage risk, and choose wisely. š§ š