Trading crypto? Here's how I look at Spot vs Futures Strategy.
Spot trading is perfect for building a long-term portfolio. You own the actual asset, there’s no liquidation risk, and you can simply hold through market volatility. It’s more beginner-friendly and lower risk — ideal for dollar-cost averaging into strong projects.
On the other hand, Futures trading offers leverage and the ability to profit both ways — long or short. It’s better suited for short-term traders who understand technical analysis and manage risk carefully. But Futures can be risky due to margin and liquidations.
I use Spot for long-term conviction plays and Futures for short-term opportunities based on technical setups.