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There are differences between spot trading and futures trading. Here are some key differences:
1. Time: In spot trading, digital assets are bought and sold and delivered instantly. In futures trading, a future time is specified for delivery of the assets.
2. Commitment: In spot trading, actual assets are purchased and received immediately. In futures trading, actual assets are not purchased, but contracts are traded for their value.
3. Leverage: Futures trading is a type of margin trading, allowing traders to increase capital leverage and enlarge financial transactions. As for spot trading, it depends on the actual capital used in buying and selling.
4. Delivery and Settlement: In futures trading, a date is set for the contracts to be delivered and settled. In spot trading, delivery and settlement take place immediately.
5. Speculative risks: Futures trading is more risky in cases of a sharp rise or fall in asset prices. Spot trading may be less risky.
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