09/09/2025
Question 101: What is the difference between Spot and Future Trading?
⚡ Spot Trading
1. Buy/Sell crypto directly at the current market price.
2. You actually own the asset (BTC, ETH, etc.).
3. Profits come only when the price goes up.
4. Risk is limited to the money you invested.
Example: Buy 1 BTC → Price increases → You can sell it higher.
⚡ Futures Trading
1.You trade contracts (not the actual crypto).
2. Can long (bet price goes up) or short (bet price goes down).
3. Often used with leverage (borrowed capital).
4. High reward but also high risk (liquidation possible).
Example: 10x leverage → 1% move in BTC = 10% profit or 10% loss.
✅ In short:
🔸Spot = Safer, own the asset, long-term.
🔸Futures = Risky, speculation with leverage, short or long
opportunities.
For new and old investors which do you prefer ? the choice is yours. 🤔
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