What is the Difference Between Spot Trading and Futures Trading on Exchanges?

Spot trading and futures trading are two fundamental methods of trading cryptocurrencies, each with distinct characteristics. Spot trading involves immediate ownership of assets, making it straightforward and beginner-friendly. In contrast, futures trading revolves around contracts for future delivery, often utilizing leverage for potential profit. This article explores the mechanics, benefits, risks, and strategies associated with both trading methods, equipping you with the knowledge needed to navigate the crypto landscape effectively.