Why spot is better, especially in this period
1️⃣ The market is volatile and unclear in direction
The current period is often:
Strong volatility
Sudden movements
Weak liquidity sometimes
In this situation:
Futures = high liquidation risk
Spot = withstand the drop without liquidation
2️⃣ Whales target the leverage
In these periods:
Whales hit the stops
Quick liquidations
Long candles deceive traders
The spot protects you from:
Liquidation
Total capital loss due to a momentary movement
3️⃣ End of the year = Distribution and accumulation
As we mentioned in the article:
Selling institutions
Smart accumulation
Slow movement but deep
The spot is excellent for:
Gradual accumulation (DCA)
Medium and long-term investment
4️⃣ Funding Rate against you
Many times:
Funding can be negative or high
Even if the trend is right… you pay funding
In the spot:
No Funding
No time pressure
5️⃣ Psychologically, the spot is calmer
Let's be honest:
Futures stress the nerves
One wrong decision = Liquidation
The spot:
Patience
Plan
Less risk
When are futures better? Although I do not recommend it for reasons
Futures need to..
Clear trend
High liquidity
Strong news
Strict capital management
Isn't it? The spot is smarter 👌
Summary 📌
In times of uncertainty, the spot protects you
And in trend periods, futures profit you
This is not a recommendation, this is my opinion. Choose what suits you and you are solely responsible for your money.