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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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.