What is the difference between trading crypto futures and spot trading?

Spot trading involves buying and selling cryptocurrencies for immediate delivery at current market prices. You own the actual coins and can transfer them to your wallet. Futures trading is a contract where you agree to buy or sell crypto at a predetermined price on a future date, without owning the underlying asset. Futures allow leverage, meaning you can control larger positions with less capital, amplifying both profits and losses. Spot trading requires full payment upfront, while futures require only a margin deposit. Futures contracts have expiration dates and funding rates, whereas spot trades don't. For beginners, spot trading is generally simpler and less risky, while futures are more complex and suitable for experienced traders comfortable with higher leverage and potential liquidation risks.