What is the difference between crypto perps and spot trading?

3 answers

• Lavanya SJul 25, 2024 · a year ago
  Crypto perps, short for perpetual contracts, are derivative products that allow traders to speculate on the price movement of cryptocurrencies without owning the underlying asset. Spot trading, on the other hand, involves buying or selling actual cryptocurrencies at the current market price. While spot trading is more straightforward and suitable for long-term investment, crypto perps offer leverage and the ability to profit from both rising and falling markets. It's important to note that crypto perps carry higher risks due to leverage and funding costs. Overall, the choice between crypto perps and spot trading depends on your trading strategy and risk tolerance.
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• LUCAS CORDEIROJan 22, 2025 · 5 months ago
  Crypto perps and spot trading are two different approaches to trading cryptocurrencies. Spot trading involves buying or selling cryptocurrencies at the current market price, while crypto perps are derivative contracts that track the price of cryptocurrencies. Crypto perps offer leverage, allowing traders to amplify their potential profits or losses. Spot trading, on the other hand, is more straightforward and does not involve leverage. Both approaches have their advantages and disadvantages, so it's important to understand your trading goals and risk tolerance before deciding which one to pursue.
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• JohanneJul 12, 2020 · 5 years ago
  Crypto perps and spot trading are two popular methods of trading cryptocurrencies. Crypto perps, also known as perpetual contracts, are derivative products that allow traders to speculate on the price movement of cryptocurrencies without actually owning them. Spot trading, on the other hand, involves buying or selling cryptocurrencies at the current market price. While spot trading is more suitable for long-term investors and those looking to own cryptocurrencies, crypto perps offer the opportunity to profit from both rising and falling markets through leverage. However, it's important to note that leverage can amplify both profits and losses, making crypto perps a riskier option. Ultimately, the choice between crypto perps and spot trading depends on your trading strategy, risk appetite, and investment goals.
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