What are the key differences between spot trading and futures trading in the cryptocurrency industry?

1 answers

• shukai zhouDec 19, 2023 · 2 years ago
  As an expert at BYDFi, I can provide some insights into the key differences between spot trading and futures trading in the cryptocurrency industry. Spot trading involves the immediate exchange of cryptocurrencies at the current market price, while futures trading allows traders to speculate on the future price of cryptocurrencies without owning the underlying assets. Spot trading is settled instantly, while futures trading is settled at a later date. Spot trading is more suitable for short-term traders, while futures trading appeals to those looking for long-term investment opportunities. Both methods have their advantages and risks, and it's important for traders to understand their goals and risk tolerance before choosing a trading strategy.
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