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Spot vs Futures Trading: What's the Difference?
Understand how spot and futures crypto trading differ, including ownership, leverage and risk.
Spot trading
In spot trading you buy or sell the actual asset at the current market price. If you buy 0.1 BTC, you own 0.1 BTC. Your maximum loss is the amount you invested, and you can hold the asset for as long as you like.
Futures trading
A futures contract is an agreement based on the price of an asset. Perpetual futures, popular in crypto, have no expiry date. You do not own the underlying coin; you take a long position to profit from a rise or a short position to profit from a fall.
Leverage changes the risk
Futures usually allow leverage, which multiplies both gains and losses. A leveraged position can be liquidated, meaning it is closed automatically and you can lose your whole margin, if the price moves against you.
Which is right for beginners?
Most beginners start with spot trading because it is simpler and has no liquidation risk. Futures are better suited to experienced traders who understand margin, funding rates and risk management.
Ready to practice? Create a free Dutch Trade account to explore crypto markets.
Educational content only, not financial advice. Crypto assets carry a high risk of loss.
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Look up unfamiliar words in the crypto glossary or browse coin markets.