#SpotVSFuturesStrategy Spot and futures trading offer two distinct ways to engage crypto markets:

Spot trading means buying or selling an asset for immediate settlement. It’s straightforward: you own the underlying asset, there’s no expiration, and it’s ideal for long-term holders or those in HODL mode. Market movements are reflected directly in your portfolio value.

Futures trading, on the other hand, involves contracts that let you speculate on price direction—without owning the asset. It enables leverage (e.g., 10× or 20×), amplifying both profits and losses. Futures lets you hedge, short assets, and extract value in sideways markets, but it comes with funding fees and liquidation risk.

A balanced strategy? Many traders “spot-futures hedge”: hold a spot position for genuine exposure while offsetting risk via an opposite futures position. This can lock in unrealized gains and reduce volatility exposure—a smart combo for savvy traders.