Spot Crypto vs Perpetual Futures
**Spot** buys the asset outright—no funding, no liquidation from leverage. **Perpetuals** use margin and pay **funding**—can amplify gains and losses.
Step by step
1. Funding cost
Annualize funding when holding perps long-term.
2. Liquidation distance
Model margin buffer before forced close.
3. Tax lots
Spot lots simpler; perps may be different tax treatment by jurisdiction.
Spot vs perp
Investors often spot hold; traders use perps with strict risk limits.
- Spot: Own asset; no funding; exchange custody risk.
- Perpetual: Leverage; funding; liquidation risk.
Use our calculators
Common mistakes
- Treating perps like spot without stop discipline
- Ignoring cumulative funding
FAQ
Can funding be positive for longs?
Yes—rates flip with market bias; check exchange schedule.