Crypto Essentials

Spot vs futures

Owning vs contracts

Spot means you buy and own the coin. Futures are contracts that track the price without owning the coin. They let you go long (profit if price rises) or go short (profit if price falls).

Perpetuals and leverage

Most crypto futures are perpetuals: contracts with no expiry date. They allow leverage: controlling a bigger position than your deposit (margin). Leverage magnifies losses as much as gains.

Test yourself

Buying spot BTC means…

You own the bitcoinSpot = direct ownership.

Which lets you profit from a falling price?

Shorting a futures or perpetual contractContracts let you sell first and buy back later.

A perpetual contract…

Has no expiry datePerpetuals stay open until you close them.

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