#SpotVSFuturesStrategy Instant Trading Strategy vs Futures Contracts
Spot trading and futures contracts are two different strategies in the cryptocurrency market. Here are some key points about each strategy:
Spot Trading
- *Instant Buy and Sell*: Cryptocurrencies are bought and sold at the current market price.
- *Taking Advantage of Volatility*: Traders can take advantage of price fluctuations by buying at low prices and selling at high prices.
- *Risks*: Risks can be higher due to significant price volatility.
Futures Trading
- *Futures Contracts*: Contracts are traded that represent the future value of cryptocurrencies.
- *Using Leverage*: Traders can use leverage to increase their profits, but it can also increase risks.
- *Hedging*: Futures contracts can be used to hedge against risks in cryptocurrency portfolios.