In crypto trading, understanding the difference between Spot and Futures is crucial for managing risk and strategy.
Spot Trading: You buy and sell crypto at the current market price. You own the actual asset, and there’s no leverage involved. It’s simple, transparent, and best for long-term holders or beginners.
Futures Trading: You don’t own the asset — you're trading contracts that predict the price of crypto at a future date. Futures allow leverage, which means both higher potential gains and higher risk. It’s often used by experienced traders to hedge or speculate.
Spot is about ownership. Futures is about prediction.
Choose your side wisely based on your goals and risk tolerance.