Crypto market basics · Lesson 2 of 3
Spot vs derivatives markets
Learn how spot assets differ from futures and perpetual contracts.
7 minute read
Spot markets
A spot trade exchanges one asset for another for settlement under the venue's spot-market rules. Owning the asset and holding a derivative are different legal and operational relationships.
Futures and perpetuals
Derivatives provide exposure to an underlying reference price. Perpetual futures generally have no fixed expiry and may use funding payments. They can introduce leverage, margin and liquidation risks that do not work the same way as spot holdings.
Key takeaway
Use these concepts to understand the market, not to assume a particular outcome. Always define uncertainty and risk before making a decision.