Spot V.S. Long 1x Leverage in Futures Market

[GreatArkansas]

This comes to my mind, what is/are the difference if you do spot trades and long positions with 1x leverage on the futures market?
What is/are the advantages/disadvantages of 1x leverage on the futures market? Since as we all know, 1x is the lowest leverage, how does it becomes different on using spot position?

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[Victorycoin]

I hope the cryptocurrency market is so risky for the leverage or futures trading platform, if you do have not enough knowledge of leverage or future trading so don’t go open future trading another side if you have deep knowledge of trading so can go open trading, in my personal opinion that leverage or future trading is most of profitable but need market trending and movement knowledge, You need to keep in mind that leverage or futures trading platform is a few movements but a lot of profit and more losses.

[Bitcoin_Arena]

I think the main advantage of 1x leverage is the fact that you can also make money when the market is on a downtrend when you short. Apart from that, I don't see any other advantage.

Long 1x Leverage in Futures Market is totally pointless according to me

Spot Market

Pros
1. No liquidations
2. No funding rates

Cons
1. You can only make profits when you buy low and sell high

[Charles-Tim]

This comes to my mind, what is/are the difference if you do spot trades and long positions with 1x leverage on the futures market?

The trading fee are not the same, it depends on the exchanges but on the exchange I have used, future trading fee is lower than spot trading fee.

Aside the trading fee, in term of profit and loss, they are basically the same, no difference. But just that you can short on future contract.

[pawanjain]

One can say that basically there's not much difference if you are spot trading or doing 1x leverage in futures but they do have little differences.
The trading fees are lower on futures. For example binance has a trading fees of 0.01% for futures and 0.1% for spot trading which is 10x times higher than futures.
Also, in futures we get the option to short the trade which allows us to make money while in a down trend.
Both have their own markets so we can spot some minor price differences in future and spot markets.

[ashmodeus]

so that mean u must using 1x leverage when bear comes , or at least small correction. someone on facebook group post his holding and his position on leverage , interestingly , he still hold his solana , and try to short solana when the correction happen, and the profit just used for buying more solana. but for long position , the only thing make sense is u just try to get profit when bull comes without having that coins, but , come on, what a joke using 1x long. its just wasting your money for funding fee.

[Mkmanik]

I found some articles regarding this post. Most of the Bitcointalk members already replied what is the difference but I think from(those link) here you can learn more:
    - https://www.reddit.com/r/Bitcoin/comments/gjuviq/1x_leverage_trading_vs_hodl/
    - https://www.reddit.com/r/CryptoCurrency/comments/iwu1es/shorting_with_1x_leverage/
    - https://www.reddit.com/r/binance/comments/m308o9/is_futures_with_1x_leverage_basically_the_same_as/
    - https://www.reddit.com/r/kucoin/comments/py8q8w/futures_1x_leverage_vs_spot_any_difference/

It's good to use 1x leverage to do short in a bearish market.
For longing 1x leverage is not good at all.

[beerlover]

what is/are the difference if you do spot trades and long positions with 1x leverage on the futures market?

Derivatives cannot be held forever as it is coming up as a contract with expiry date. You need to close your positions by expiry date. So, instead of going for 1x leverage on futures, you may go for spot trading as on both you can trade as quantity. Still, in spot trading you can withdraw to your personal addys hence you never need to close your positions out of any hurry.

1x is the lowest leverage, how does it becomes different on using spot position?

When you are opting for no leverage then you do not need to pay any fee for margin. But, fluctuations might be more wild on derivatives as they are predicted future prices but in spot markets are just reflecting what is current trend on markets. So, if you are scalping then futures trading may favour you.

This may help you understand the basic differences of spot and futures trading:


Source: Binance email.

[Mpamaegbu]

Long 1x Leverage in Futures Market is totally pointless according to me

Honestly, even to me too. It's pointless with that minor leverage. Anyone who trades Futures with that abysmal leverage should just stick to Spot trading. Futures isn't for the lilly hearted. It's tough and quick either way – winning or losing. It also typifies the saying, "If you're scared of dying, then don't go to the war front." It's a bloody place to be. Sorry, I had to used war as the closest analogy there. Futures is a more radical angle in trading than the conservative spot trading. I don't even do Futures myself in crypto. At least, not yet.

[safari88]

For me they are just like the same but in spot there will be no liquidation and in futures you can go short position meaning you can have profit even when the coin price is going down. I'm not an expert but you might do your own research and some users here give the difference of the two.

[GreatArkansas]

Thanks to everyone for the feedback, I conclude, using 1x leverage for a long trade on futures is almost the same with spot trade position.
But I think there is also we consider on using futures market, there is funding fee as just what @Bitcoin_Arena said, which this funding fee is identify is long positions paying shorts for free or shorters paying longs positions for fees, so for sure, this is also important if you are having huge trade size.