Quick Comparison: Spot Trading vs Futures Trading
| Feature | Spot Trading | Futures Trading |
|---|---|---|
| Leverage | None | Up to 100x+ |
| Expiration | None | Varies |
| Risk | Lower | Very High |
| Complexity | Simple | Complex |
What is Spot Trading?
Spot trading is simple: you buy crypto and you own it. No leverage, no expiration, no liquidation. If BTC goes up 10%, you make 10%. If it goes down 10%, you're down 10% but you still have your BTC.
This is how most people should trade. It's straightforward, you can't lose more than you invest, and you can hold through volatility without getting liquidated at the worst possible time.
What is Futures Trading?
Futures let you trade with leverage — 10x, 50x, even 100x your capital. You can go long (betting up) or short (betting down) without owning the actual asset. Maximum profits... and maximum losses.
The catch: liquidation. If your position moves against you enough, the exchange closes it and takes your margin. Countless traders have been wiped out betting big with leverage. Only use it if you truly understand the risks.
Key Differences
- Leverage: Spot = 1x only, Futures = up to 100x+
- Liquidation: Spot can't be liquidated, Futures can
- Shorting: Spot = only long, Futures = long or short
- Funding: Futures have funding rates, Spot doesn't
- Ownership: Spot = you own the asset, Futures = you own a contract
- Risk: Spot = lose up to 100%, Futures = lose more than 100%
Which Should You Choose?
Choose Spot Trading if: You're new, don't need leverage, or want to actually own your crypto. This is the smart choice for 95% of traders.
Choose Futures Trading if: You want to short, need capital efficiency, and fully understand liquidation risk. Use small position sizes and never bet the farm.
Track Both with Strykr
Stop juggling multiple apps. Strykr gives you unified access to crypto and stocks with AI-powered insights. Whether you choose Spot Trading, Futures Trading, or both — monitor everything from one intelligent dashboard.