Updated 2 months ago
/ /
What’s the difference between Spot/Buy Crypto and Perpetual Futures?
Feature | Spot/Buy Crypto | Perpetual Futures |
Ownership | Underlying asset (actual crypto held) | Derivative contract (no direct ownership) |
Leverage | None | Yes (trade larger with margin) |
Risk of Liquidation | No | Yes (due to margin calls) |
Holding Period | Unlimited (ideal for long-term holding) | No expiry (requires active management) |
Trading Flexibility | Long only (must buy before sell) | Long and Short positions |
Spot/Buy Crypto is ideal for long-term investors seeking direct asset ownership.
Perpetual futures are suited for active traders who want to use leverage.
If you’d like to learn more about how Perpetual Futures compare to other crypto products, please refer to this article.
Was this article helpful?