How does the spot market differ from the futures market in the cryptocurrency industry?

1 answers

• Dec 27, 2021 · 3 years ago
  In the cryptocurrency industry, the spot market and the futures market serve different purposes. The spot market is where traders can buy or sell cryptocurrencies for immediate delivery. It is commonly used by individuals and businesses who need to use cryptocurrencies for transactions or investments right away. On the other hand, the futures market is more suitable for traders who want to speculate on the future price movements of cryptocurrencies. By entering into futures contracts, traders can take advantage of price fluctuations and potentially make profits without actually owning the underlying assets. Both markets have their own advantages and risks, and it's important for traders to understand the differences before getting involved in either market.
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