Spot trading involves buying or selling a cryptocurrency at its current market price, with immediate settlement and direct asset ownership.
Perpetual futures are derivative contracts that allow traders to speculate on price direction using leverage, without owning the underlying asset and without a fixed expiry date.
Key differences:
| Feature | Spot | Perpetual Futures | |---|---|---| | Asset ownership | ✓ Direct | ❌ Derivative | | Expiry date | None (hold indefinitely) | None (but funding rate anchors price) | | Leverage | Typically 1x–5x (margin) | Up to 100x | | Funding rate | N/A | Paid/received periodically | | Liquidation risk | Limited (can't go below 0) | Yes — full position liquidation |
Which should your exchange offer? Spot is simpler to launch and regulate. Perpetuals drive significantly higher volume but require a liquidation engine, mark price service, and insurance fund.