What are the differences between spot markets and futures markets in the cryptocurrency industry?

1 answers

• Dec 28, 2021 · 3 years ago
  Spot markets are generally considered less risky compared to futures markets. In spot trading, traders are exposed to the price risk of the cryptocurrency itself but are not subject to additional risks associated with futures contracts, such as margin calls and liquidation. Futures markets, on the other hand, offer the potential for higher returns but also carry higher risks. Traders need to carefully manage their positions and monitor market conditions to avoid significant losses. It's important to note that both spot markets and futures markets play important roles in the cryptocurrency industry, catering to different trading strategies and risk appetites of market participants.
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