When I first started getting interested in cryptocurrency, there was complete confusion in my head. The word "spot" seemed like something from the banking world, and "futures" — entirely from the field of mathematics. But in another social media video, I saw that you can not only "just hold coins" but also earn faster through trading. That’s how I decided to figure it out.
🔎What is spot: you just buy and hold
On the spot, everything is quite simple. You buy cryptocurrency and it becomes yours. For example, I bought ETH and BTC on the exchange. It immediately showed in my account that I owned these coins. And if they increase in price, I can sell them and earn.
🔊 My first experience on the spot
After another purchase, I just waited... for a long time... It felt like an investment: as if I bought gold. After a month, the price went up, I sold, earned a bit, and was happy. It’s simple: bought, waited, sold.
But here’s an important point: if the price falls, your coin becomes cheaper, and you either wait for it to go up again or sell at a loss. I had this happen with one altcoin. I bought it thinking it would soar, but after a couple of weeks, the price fell, and I had to wait a long time just to get my money back.
‼️ Futures: betting on predictions
Futures are no longer about buying "in real time". Here you are kind of "negotiating" with the exchange: will the price go up or down? And if you guess right, you earn.
❤️🩹 How I tried futures for the first time
One day I wanted to try something new. I heard that you can earn on futures even if the market is falling. For this, you need to open a short position. I decided to take the risk.
I opened a trade betting that the coin's price would fall and watched. During the day, the price did go down, and I earned. I was so happy that I immediately tried again, but without proper analysis this time. The price went up, and my trade closed at a loss.
What are the main differences
1. On the spot:
- You buy the coin, and it’s yours.
- You can hold it for as long as you want.
- Risks are lower because even if the price falls, the coin stays with you.
2. On futures:
- You don’t buy the coin; you bet on the price movement.
- You can earn faster, but it’s also easy to lose money.
- You need to constantly monitor the market because changes can happen at any moment.
What I learned from my experience
Spot is a safe option for those who are just starting. There’s less stress: you buy a coin, wait for it to rise, and sell. But you won’t earn if the market is stagnant or falling.
Futures are more about active trading. You need more experience and attention here. You can earn even when the market is falling, but it comes with risks. If you don’t know how to manage your trades, you can lose money very quickly.
📌 Tips for beginners
- Start small. Don’t invest all your money at once.
- If you try futures, learn and study to understand how it works.
- On the spot, choose coins that seem promising to you, and don’t panic if the price drops a little.
- Always set loss limits (stop-losses) on futures to avoid losing everything.
Right now, I use both tools. Spot for long-term investments — it’s calm and less nerve-wracking. And futures for active trading when you want to earn faster. But the most important thing is to always remember the risks and be prepared for both profits and losses.