Spot vs Futures Trading — What’s the Difference? 📊
A beginner thread 🧵👇
Spot Trading:
You buy the actual crypto and own it.
Example: You buy 1 BTC → You hold 1 BTC.
Futures Trading:
You don’t own the crypto.
You trade contracts that track the price.
Key differences:
1) Leverage
Futures allow leverage (borrowed money).
2) Risk
Higher reward → Higher risk.
3) Liquidation
Your position can be closed automatically if price moves against you.
Beginners should start with Spot first.
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