The choice between futures trading and spot trading depends on your trading goals, risk tolerance and experience level.

*Futures Trading*

- Suitable for: Experienced traders seeking high returns through leverage and flexibility

- Benefits:

- Allows speculation on price movements without owning the asset

- Offers leverage, enabling amplified returns

- Provides hedging opportunities to manage downside risk

- Enables traders to go long (bet on price increases) or short (bet on declines)

- Risks:

- Higher potential for losses due to leverage

- Requires precise timing and market understanding

*Spot Trading*

- Suitable for: Beginners and long-term investors seeking simplicity and ownership

- Benefits:

- Straightforward process of buying and holding assets

- No risk of liquidation or leverage-related losses

- Ideal for riding long-term market trends

- Drawbacks:

- Limited flexibility compared to futures trading

- No opportunity for leverage or short selling

Consider combining both spot and futures trading to balance long-term and short-term strategies. Ultimately, assess your risk tolerance, experience and goals to choose the right approach ¹.