Spot • Buy the asset → you actually own it • Profit from price increases • More relaxed, ideal for holders & investors • Lower risk, no liquidation
Futures • Trade contracts, not the asset itself • Can go long or short • Uses leverage (both profits & losses are amplified) • Risk of liquidation if the market moves against you
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Spot vs Futures: Don’t Enter the Wrong Arena
Spot
• Buy the asset → you actually own it
• Profit from price increases
• More relaxed, ideal for holders & investors
• Lower risk, no liquidation
Futures
• Trade contracts, not the asset itself
• Can go long or short
• Uses leverage (both profits & losses are amplified)
• Risk of liquidation if the market moves against you
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