#SpotVSFuturesStrategy Understanding the difference between spot and futures trading is essential for any crypto trader. Spot trading involves buying or selling a cryptocurrency at the current market price and holding the actual asset. On the other hand, futures trading allows you to speculate on the price movement of an asset without owning it. Spot trading is often preferred by long-term investors, while futures trading is used by traders looking for short-term gains and leverage. Futures allow both long and short positions, offering opportunities in both rising and falling markets. However, they also come with higher risk due to liquidations and margin requirements. A balanced strategy may involve using spot for holding and futures for hedging or quick profits. Risk management is key in both types of trading, and understanding how each works helps traders build more effective strategies on platforms like Binance.