Spot vs Margin vs Futures: What is your strategy?

If you are entering the world of crypto, you need to understand the 3 main types of trading. Let's simplify:

Spot Trading

It's basic: you buy BTC/ETH at the current price and keep the coin in your wallet. No loans, no leverage. Is it risky? A little. Is the gain limited? Yes, it only grows if the price goes up.

Spot Margin

Now you borrow money from the platform to buy more. With 10 USDT + 10x leverage, you purchase assets worth 100 USDT.

But be careful: if the price drops too much, you suffer liquidation (lose the collateral). You also pay interest on the loan.

Futures ( and Perpetuals )

You do NOT own the asset. Speculate on the price at a future date or hold it perpetually. With 10 USDT + 10x leverage, you control a position of 100 USDT.

• Normal futures: have an expiration date (daily to quarterly)
• Perpetuals: no expiration, you stay as long as you want (paying financing fees)

Risk vs Reward

Beginner? Start with spot. Want to do swing trading? Margin works. Want to speculate wildly? Futures is your playground—but it can break quickly.

Tip: Liquidation occurs when your collateral no longer covers the loan. The higher the leverage, the lower the margin of safety.