#SpotVSFuturesStrategy Spot trading involves immediate buying or selling of an asset at its current market price for direct ownership. Strategies typically focus on long-term holding (HODL), swing trading based on price fluctuations, or day trading to capitalize on rapid intraday movements. Risk is generally lower as there's no leverage.
Futures trading, conversely, uses contracts to agree on a future price and delivery date, allowing speculation or hedging without immediate asset ownership. Strategies often involve leverage, amplifying both gains and losses. Common approaches include trend following, momentum trading, mean reversion, and arbitrage. Futures offer flexibility for short-selling and can be used for hedging existing portfolios against price drops.