Today I learned something I always mixed up, and I decided to share it with you because I’m sure about half of us go through the same confusion 👇
Spot vs Futures: the difference is simple
Imagine you buy a phone from the store, you pay cash and take it with you right away, that's Spot. You actually own the coin, you buy and sell at its real price, and if the price drops, you only lose the value of what you bought, nothing more.
On the other hand, Futures are like a bet on the future price of the phone. You don’t actually own the phone; you expect its price to rise or fall, and you can use leverage to amplify your position. However, if your guess is wrong, the losses can be bigger and come at you faster.
In short:
🔹 Spot = actual ownership, limited risk
🔹 Futures = speculation, multiplied risk due to leverage
As a newbie, it’s best to start with Spot until you understand the market well before venturing into Futures.
Did you know the difference before, or was this new info for you? 👇
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