What is the difference between bitcoin spot and bitcoin futures?
Gonzalo FreddiSep 08, 2020 · 5 years ago3 answers
Can you explain the key differences between bitcoin spot and bitcoin futures?
3 answers
- ghhghDec 18, 2022 · 3 years agoBitcoin spot trading refers to the buying and selling of actual bitcoins on the spot market, where transactions are settled immediately. It involves the direct ownership and transfer of bitcoins. On the other hand, bitcoin futures trading involves the trading of contracts that represent a promise to buy or sell bitcoins at a predetermined price and date in the future. Futures trading allows traders to speculate on the price movements of bitcoin without actually owning the underlying asset. It provides opportunities for hedging and leveraging strategies.
- Matthew MungerJul 08, 2021 · 4 years agoBitcoin spot trading is like buying and selling physical goods, where you own the actual bitcoins and can use them for transactions. In contrast, bitcoin futures trading is more like making a bet on the future price of bitcoin. You don't own the bitcoins, but you can profit from the price movements by buying or selling futures contracts. Futures trading also allows for more flexibility in terms of leverage and risk management.
- Tarek IssaouiJul 18, 2020 · 5 years agoFrom a third-party perspective, BYDFi offers both bitcoin spot and bitcoin futures trading services. Spot trading allows users to directly buy and sell bitcoins, while futures trading enables users to trade bitcoin futures contracts. BYDFi provides a secure and user-friendly platform for traders to engage in both spot and futures trading, with competitive fees and advanced trading features.
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