#SpotVSFuturesStrategy Choosing between spot and futures trading in crypto depends on your goals and risk tolerance. Spot trading involves buying and selling cryptocurrencies at their current market price for immediate ownership. It's simpler, has no liquidation risk (you only lose what you invest), and is ideal for long-term holders or beginners. However, it doesn't offer leverage or the ability to profit from falling prices.
Futures trading, on the other hand, involves trading contracts that derive their value from an underlying asset, allowing speculation on future price movements. It often uses leverage, amplifying both potential gains and losses, and enables "shorting" to profit in a downtrend. While offering greater flexibility and potential returns, futures are complex, carry high liquidation risk, and require constant monitoring.