Spot trading: You buy actual crypto. Simple, no leverage. You own the asset. Good for beginners.
Futures trading: You trade contracts. Leverage up to 100x. Higher risk, higher potential reward. You don't own the actual coin.
My advice for beginners:
- Start with spot trading. Learn the basics first.
- If you try futures, use small leverage (2x-5x max). 100x is gambling.
- Set stop-loss. Always. I learned this the expensive way.
I trade mostly spot now. Futures only when I'm very confident about direction. Too stressful otherwise.