#SpotVSFuturesStrategy
When it comes to crypto trading, two popular strategies are spot trading and futures trading. Let's break it down with a pair coin like BTC/USDT.
Spot Trading:
🎐 Buy and sell BTC for immediate delivery
🎐 Own the asset outright
🎐 No leverage or margin calls
🎐 Suitable for long-term investors
Futures Trading:
🎐 Buy or sell contracts to trade BTC at a future date
🎐 Speculate on price movements without owning the asset
🎐 Leverage can amplify gains, but increases risk
🎐 Suitable for experienced traders
Key differences:
🎐 Ownership : Spot trading gives you direct ownership, while futures trading involves contracts
🎐 Risk : Spot trading is generally less risky, while futures trading involves higher risk due to leverage
🎐 Leverage : Futures trading allows for leverage, while spot trading does not
Which strategy works best for you? Share your thoughts!
