Overview
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.