Spot vs Futures Trading โ Which One Should You Use?
๐ช Two ways to trade crypto, two different risk levels. Know the difference before you jump in.
๐ข What is Spot Trading?
๐งพ You buy the actual asset (e.g., BTC, ETH) and own it.
โ You keep the coins in your wallet
โ No leverage = Lower risk
โ Simple and beginner-friendly
โ Good for holding (HODL) or long-term investing
> Example: Buy 0.01 BTC at $110,000 โ Sell at $120,000 โ Profit = $10,000
๐ด What is Futures Trading?
๐ You donโt own the coin โ you trade based on price movement.
โ Can profit from both rising and falling markets
โ Use leverage (e.g., 10x, 20x)
โ Short-term trading
โ ๏ธ High risk = Quick profits or quick losses
> Example: Use $100 with 10x leverage = $1,000 position
But a 10% wrong move = Liquidation (you lose your $100)
๐ค Soโฆ Which One Is for You?
Spot Trading ๐ข
โ Risk Level Low
โ Ownership You own coins
โ Suitable for Beginners / Investors
โ Leverage No
Futures Trading ๐ด
โ Risk Level High
โ No ownership
โ Experienced Traders
โ Leverage Yes (up to 125x)
โ Final Tip:
๐ช Start with Spot
๐ Learn Futures on Demo first
๐ Education comes before execution.