Spot trading involves the direct exchange of assets at current market prices, giving you full ownership of the cryptocurrency you purchase. It’s best suited for users who prefer simple buy-and-hold strategies or immediate conversions between coins.
Perpetual trading, by contrast, lets you speculate on price movements using leverage — without ever owning the underlying asset. These contracts have no expiry date and are ideal for active traders looking to benefit from both rising and falling markets.
Key differences:
- Ownership: Spot gives you the actual asset; Perpetual offers exposure through a contract.
- Leverage: Spot trades use 1x balance; Perpetual lets you control larger positions with margin.
- Risk & Reward: Spot is straightforward and lower risk, while Perpetual carries higher profit potential - and higher downside if unmanaged.
