🔹 Spot Trading
This is traditional trading where you buy and sell actual cryptocurrencies like $BTC or $ETH.
Ownership: You actually own the underlying crypto asset in your wallet.
Goal: The primary goal is usually to hold the asset (HODL) or profit from the asset's price appreciation over time.
Risk: You can only profit if the price goes up (unless you short-sell by borrowing).
🔹 Futures Trading
This is a contract where you agree to buy or sell an asset at a predetermined price and time in the future. You're speculating on the price movement, not owning the asset itself.
Ownership: You do not own the underlying crypto asset. You own a contract.
Goal: To profit from both up and down price movements (go long or short), often using leverage.
Risk: High risk due to leverage, which magnifies both potential profits and losses.
🤔 Which one do you use more often?
Let me know in the comments! 👇. #binnace #BinanceOfficial
