Spot vs Futures in Crypto: What Is the Difference?
On spot you buy the coin itself; with futures you trade a contract on its price, often with leverage and the ability to short.
When you buy bitcoin on spot, you own it: you can withdraw it to a wallet and hold it for as long as you like, and nobody can liquidate you. You can only lose what you put in.
A future is a contract on the price difference. You never receive the coin, but you can go short and use leverage. Perpetual futures dominate crypto: they never expire, and funding keeps their price close to spot.
Because of leverage, futures create liquidations — forced closes of positions — and those often accelerate sharp market moves.
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Frequently asked questions
Which is safer, spot or futures?
Spot: there is no leverage and no liquidation. On futures you can lose a position's entire margin within minutes.
Can you short on spot?
Not directly. Betting on a fall needs futures or margin trading with a borrowed coin.