--- title: 'Spot Trading vs Futures Trading: Complete Beginner''s Guide' source: 'https://youtube.com/watch?v=yYa660OKylw' video_id: 'yYa660OKylw' date: 2026-07-14 duration_sec: 580 --- # Spot Trading vs Futures Trading: Complete Beginner's Guide > Source: [Spot Trading vs Futures Trading: Complete Beginner's Guide](https://youtube.com/watch?v=yYa660OKylw) ## Summary This video explains the key differences between spot trading and futures trading in cryptocurrency, emphasizing that futures trading is highly risky and not suitable for beginners. The presenter advises beginners to start with spot trading, where you own the actual asset, and only consider futures after gaining experience. ### Key Points - **Warning about futures trading** [00:01] — Futures trading can shake you like no other tool and can bring you down to earth in seconds. It can make you a millionaire or a 'husband' (slang for losing everything). - **Spot trading explained** [01:39] — In spot trading, you use your own money to buy actual cryptocurrency (e.g., Bitcoin) and own it. You profit only if the price goes up. - **Futures trading explained** [03:13] — In futures trading, you trade contracts, not actual crypto. You can profit from both rising and falling markets. Leverage allows you to trade with borrowed money, amplifying gains and losses. - **Key differences: ownership and leverage** [06:04] — Spot trading gives you ownership of the asset and no leverage. Futures trading involves contracts and high leverage (up to 125x), increasing risk. - **Which is better for beginners?** [07:53] — Beginners should start with spot trading because it has lower risk. Futures trading is for experienced traders who understand technical and fundamental analysis. ### Conclusion Spot trading is safer and recommended for beginners, while futures trading is a high-risk, high-reward tool for experts. The presenter will make dedicated tutorials based on viewer interest. ## Transcript spot trading. Bhaijaan, what do you do? Simply watch a video in and think that a lot of money can be made. Directly you say teach us future trading. Bhaijaan ji, before doing trading, listen to one thing of mine carefully. Future trading is such a tool that if you enter into it without thinking, it will shake you like no other tool in your entire life has shaken you as much as this can shake you in a few seconds and can bring you down to earth. Yes friends, this can make you a millionaire and also a husband. Therefore, if you are a complete beginner, then before trading, understand the difference between the two trading options, spot trading and future trading. Also know which of these two is better for you. Yes, it is very important for you to know this. Then whatever you say, we will teach you spot trading and also future trading. But it if you watch this entire video, as to what is spot trading? What is futures trading? What is the difference between these two? And which one is better for you? If you are interested or if you have come to this channel for the first time, the name of this channel is 9 on which you regularly get online learning and detailed skills related videos. So then subscribe to the channel and if you understand the difference between future and spot then definitely like this video and if you want to learn which trading among the two then definitely comment. So before further ado let's start the video. ? Binance is the world's largest crypto exchange, create an account on it. Link in the description: As soon as you click on it, a window will open in front of you. enter name, do KYC and complete your account. The first thing to do here is to go over the trade. First of all let us know about spot trade that what is spot See, what happens in G spot trading is that you have $. You have $ lying around. You come directly to the exchange. Here you can select any coin you want to buy. Like BTC. There are many more coins besides BTC. The most many more coins besides BTC. The most major one is BTC. You have $00. You come here directly. What price is going on? Look here its price is $18164. You want to buy bitcoins worth $. You will simply come up to it. After coming here, simply write $00 here and click on the buy button here. Bitcoins worth $ will be transferred to your wallet. Did you understand? That means you have an amount of $100. You will go to the At the Spot Market. There you will buy Bitcoin for $ and keep it in your wallet. You will become its owner. Becoming an owner is exactly the same as going to the market. Go to a jeweler shop. You have $. You can take gold worth $ and take it home. You have become its owner. You held him. I am sure you must have understood this. Now as you own this Bitcoin worth $100 of Bitcoin. Now you will see that if its price goes up in the coming days, then you can make profit by selling it. But again, it is not necessary that the price will go up. Many times the price of gold also goes down. The price of Bitcoin also goes down. When you sell that actual Bitcoin or Gold, you will make profit or loss. It's done. Now let us talk about what is future trading? For future trading, see here, click on it. As soon as I clicked on it, look here, the same graph will appear as that of spot trading. Now some scenes in this are that look here trade in it, you trade in futures, then you do not trade actual BTC. You trade BTC contracts. I am telling you again. You don't trade actual BTC. BTC means trading contracts of any cryptocurrency. example, your fundamental and technical analysis is strong. If you think that the price of Bitcoin will go up or down due to some reason, then on that basis you enter into a contract with the exchange and trade it. For related to crypto currency very carefully. And in the news also, there is news from USA where with China or some other country. Because of that, price into future trading. You say, what is the price right now? Running at $118,000. Its price will be dumped here and will go down. So on that basis you come to this exchange and you trade its contract. Guess that look here, this price will go down. Look here, for example, let me example, see here the price is ₹1,18,000. You say that its price will come down here. Ok? Here its price, for example, I say that Look at this here. You say that its price will come here. For example, I am giving you an example. Are you ok ? Now what happens is that you are opening a trade here based on your analysis. You are What will happen here is that the exchange will price comes down, see, you will close your trade here and the exchange will buy it. And the difference between this will be the profit and you will take that in your pocket. That means, see here that you are not turning on any actual asset. You are just trading contracts here. And again I am telling you that this is highly volatile trading. I will tell you how later. And here you also get another option. If you don't have $1, you only have $10. For example, you have $10 here. So what can you do? You can take leverage from here. For example, if you can take leverage of 10. That means you can open a trade of $100 with $. What leverage is is that the exchange lends you money. Look here, the leverage option is visible. This means you can start with even 10x leverage. It also goes up to 125. If you have $10, you can borrow it from this exchange and place more trades here using the same amount of leverage. Now you might be thinking that we should this will be taught only if you comment and are interested. This is a bit more technical than spot trading. Now the question arises here that what is the difference between these two what is the difference between these two. Now trading. Ownership in this means that you have ownership in it. You have actual crypto currency. When you do spot trading. In contrast, when you are trading futures, you do not have the actual currency. You are trading contracts. The contract of that crypto currency is being traded. You are not its owner. Did you understand? Secondly, in this, you do not get any leverage. You can buy crypto currency only for the amount of money you have. If you have $ then you can buy crypto currency only for $. But in futures trading you can take high leverage. Even if you have $10, can take high leverage. Even if you have $10, you can borrow 10x, 20x, up to $125x. you can borrow 10x, 20x, up to $125x. Look here, if we talk about risk, there is low risk in it. People buy these assets to hold them for the long term. Look at it this way, there is less risk in this. You have an actual asset. But here it is highly volatile. They are taking leverage. If you had taken leverage of 10x. If the market is down and you open a long trade, you also incur a loss of 10x. you also incur a loss of 10x. is the key point, see here you can make money in just one time. If you have bought the asset, bought Bitcoin, bought it and its price goes up in the market only then you will make profit in spot trading. But in futures trading, you can still make profits by opening a long trade even if the market goes up. If the market goes down, In simple words, this is a double-edged sword. It can bite you from both sides and help you too. It's okay, sir. These were the main key differences here. I am sure you must have understood here. And now the most important thing is what is better for you? Look, if you are a complete beginner. You don't know anything about crypto currency. If you have limited money then you will come into spot trading. You will see which are the strongest coins. For example Bitcoin, Ethereum etc, BNB etc. You will simply see if the market is going bullish. All the green candles are going up. going bullish. All the green candles are going up. If you are a beginner, if you are an investor, then also you should buy within spot trading because there are chances of low risk in it and it is trading. Futures trading is for those who have crossed the beginners stage. They know how to do fundamental technical analysis. They know how the trade market exists for them. He can gain And again this is a highly volatile market. You You are not zero in that. Even if the price of the coin goes down, you get enough time. Gradually the price goes up. You recover. But you can liquidate within a futures trade. There can also be zeros. Again, spot trading is for beginners and future trading is for those who reach expert level. So take your decision wisely and which of the two would you like to learn, spot trading or future trading, please comment, I will work on that too and will make a proper dedicated video for you, in that too I will explain to you the basics of how you people will have to do these things. asks you what is spot trading? What is future trading? Which trading you want to do, which one someone should do, you can definitely tell him.