Spot trading involves the immediate exchange of assets, where trades are settled "on the spot" at the current market price. In spot trading, traders buy and sell actual cryptocurrencies like Bitcoin or Ethereum.
On the other hand, futures trading involves the buying or selling of an asset at a future date for a price that is agreed upon today. Futures trading allows traders to speculate on the price movements of cryptocurrencies without actually owning the underlying asset. This creates opportunities for profit from both upward and downward price movements.
In summary, the main difference between spot trading and futures trading in crypto is the timing of the trade execution and settlement, as well as the underlying assets being traded.
