What is the difference between spot price and future price in the context of cryptocurrency?

3 answers

• Iliq NikushevJan 25, 2024 · 2 years ago
  Spot price refers to the current market price of a cryptocurrency at the moment of purchase or sale. It represents the immediate value of the asset and is determined by the supply and demand dynamics in the market. Future price, on the other hand, refers to the expected price of a cryptocurrency at a specified future date. It is derived from the spot price and takes into account factors such as market trends, interest rates, and market sentiment. Traders and investors use spot price to make immediate transactions, while future price allows them to speculate on the future value of a cryptocurrency.
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• Kruse EllegaardJan 13, 2022 · 4 years ago
  Spot price and future price are like the present and the future of a cryptocurrency. Spot price is what you see right now, like checking the price of Bitcoin on an exchange. Future price, on the other hand, is like a crystal ball that predicts the price of Bitcoin at a future date. It's based on a lot of factors and can change over time. Traders and investors use future price to make bets on the future direction of a cryptocurrency, while spot price is used for immediate buying and selling.
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• ELC MangaloreDec 15, 2023 · 2 years ago
  Spot price and future price are two important concepts in the world of cryptocurrency trading. Spot price is the current price at which a cryptocurrency can be bought or sold immediately, while future price is the price at which a cryptocurrency can be bought or sold at a specified future date. The difference between the two lies in the timing of the transaction. Spot price is for immediate transactions, while future price allows traders to enter into contracts to buy or sell a cryptocurrency at a later date. This can be useful for hedging against price fluctuations or speculating on future price movements.
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