Entering the crypto space and making trades, the first important decision is right in front of you: spot trading or futures trading? Both can profit from price fluctuations, but the gameplay is completely different, and the risk levels vary greatly. This guide breaks down all the details of spot trading and futures trading, from basic mechanisms, pros and cons analysis, risk levels, to suitable audiences. After reading, you'll know which path to choose.
Spot Trading: The Most Straightforward Buying and Selling Logic
Core Definition: Spot trading involves directly buying and selling real crypto assets using fiat currency or stablecoins. You own the actual coins, and when the price goes up, you sell for profit. It doesn't involve leverage or futures contracts; it's purely "buy low, sell high."
How it works:
1. Use USDT to buy 1 Bitcoin (current market price $90,000)
2. The 1 BTC indeed exists in your wallet
3. Sell when BTC rises to $95,000
4. Earn a $5,000 profit (minus fees)