#SpotVSFuturesStrategy

#SpotVSFuturesStrategy

📌 Spot Trading: Buying a digital asset like BTC or ETH directly from the market at the current market price, while holding actual ownership of the currency. There is no leverage, and the risks are relatively lower. Suitable for conservative investors or those following a buy-and-hold (HODL) strategy.

📌 Futures Trading: You do not actually buy the asset but trade on its price, and you can use leverage (e.g., 10x or 50x). Profits can be made in both rising and falling markets. Risks are higher, especially with potential liquidation if the price moves against you by just a small amount.

📈 Strategies:

✅ Spot Strategy:

Enter at strong support areas.

Use technical analysis to identify gradual buying points.

Long-term goal.

No need for a close stop loss (but it is recommended).

Ideal for newcomers or those who do not want high risk.

🔁 Futures Strategy:

Quick entry and quick exit (scalping or day trading).

Identify well-considered entry points with strict stop loss.

Use reasonable leverage (2x–5x for beginners).

Capital management is essential.

Do not open positions without a clear plan.

Ideal for experienced traders.

⚠️ Tips:

Do not use Futures without understanding the risks.

Learn to read candlesticks and technical indicators.

Always use a stop loss.

Do not risk more than 1–3% of your capital on a single trade.

💡 Combine both types:

Keep a portion of your portfolio in long-term Spot.