Spot vs perpetual
Spot is physical ownership of the token. A perpetual is a leveraged instrument on its price — with funding, margin and possible liquidation.
| Criterion | Spot | Perpetual (perps) |
|---|---|---|
| Ownership | You hold the token in your wallet | A contract on the price — no token in your wallet |
| Leverage | 1:1 (buying means paying the full value) | Up to hundreds of times — risk of liquidation |
| Costs | Spread + a transfer fee | Spread + funding charged periodically + slippage risk |
| Risk | Price risk (hodl) | Price risk + liquidation + funding |
Worked out on one example
A perpetual has no expiry date, but it has a cost that grows with time. We calculate holding a position for 30 days.
Example assumptions
- Position notional of $5,000 (no leverage).
- Funding of 0.01% every 8 hours — a value assumed for the calculation, not market data.
- A 30-day hold; spot: a 0.10% fee on the value at entry.
The arithmetic
- Funding for one 8 h period $5,000 × 0.01% = $0.50
- Number of periods in 30 days 30 × 3 = 90
- Funding cost over 30 days 90 × $0.50 = $45
- Entry cost on spot $5,000 × 0.10% = $5 one-off
- Difference and share of notional $45 − $5 = $40, i.e. 0.8% of notional
- Variant with funding of 0.1% per 8 h 90 × $5 = $450, i.e. 9% of notional
Funding is a charge for time, not for the result: you pay it even when the price stands still. Spot pays once at entry. Hold a position for weeks and that difference stops being a detail and becomes a separate line in your arithmetic.
The arithmetic rests on the assumptions stated above — it is not a forecast and not market data. Put in your own numbers: tools.
This comparison describes differences in mechanics; it does not recommend a choice. The fit depends on your horizon, capital and risk tolerance. Educational content — not investment advice.