Just entering the world of Crypto, I was also confused by the many different trading methods. But after some time, I realized that the two main methods most people use are Futures and Spot. Today, I want to share this with you.

First is Spot. When you trade spot, what does it mean? It's simple, it means you directly buy a certain coin or token. Once purchased, it is 100% owned by you. For example, I take 20 million VND in cash to buy Bitcoin, at that moment I own BTC worth 20 million. If the BTC price rises to 30 million, and I sell, I make a profit of 10 million. But if the price drops to 10 million and I don't sell, the BTC still remains in my wallet, with no maintenance fees. I can wait until the price rises again before selling.

Futures, on the other hand, are different. This is a trading method based on betting on the price direction through futures contracts. The advantage is that you can make money whether the price goes up or down. But the risk is also much higher. For example, if an ETH/USDT Futures contract is valued at $1,000 and the exchange allows 10x leverage, you only need $100 to open a position. If the price increases by 10%, your profit will double, that is, 20% of your initial capital. But if the price drops by 10%, you will lose the entire $100. That’s why Futures are riskier than Spot.

The core difference is: when you trade spot, you actually own the coin. With Futures, you are only trading a future contract, not owning the actual coin.

Besides this fundamental difference, these two forms also have many other distinct features. For example, trading timeframes, risk levels, costs, liquidity, etc.

But they also share some similarities. Both aim to buy and sell digital assets to profit from price differences. Both rely on the underlying market of digital assets, so the asset price will determine the prices of both types of trading. Both can occur during the market’s trading hours. And both carry risks from digital asset price volatility.

There are many exchanges that allow you to perform both types of trading. If you are exploring more or have questions about what spot coin is or how to trade Futures, make sure to research thoroughly before starting. Wishing you successful trading!