#SpotVSFuturesStrategy Spot and Futures trading differ significantly in strategy, risk, and execution. Spot trading involves owning the actual asset (e.g., BTC, ETH), typically used for long-term investment or swing trading. Common strategies include HODLing, Dollar-Cost Averaging (DCA), and swing trading, with a focus on fundamentals and technical levels. Risk is lower as there's no leverage or liquidation risk, and capital is managed through portfolio diversification and stop-losses.

Futures trading, on the other hand, is leveraged and allows you to go long or short. Strategies include scalping, trend-following, hedging spot holdings, funding rate arbitrage, and basis trading. Futures offer capital efficiency but carry higher risk due to potential liquidations and volatility. Risk is managed using strict stop-losses, position sizing, and leverage control—usually staying under 3x for most traders.