3 - If I've understood both the above scenarios correctly, what is the benefit in using Spot or Margin? It seems to me that Derivatives does exactly the same as Spot and Margin with the added benefit of additional leverage if required! Is that not right?
I'm wondering why not just buy on spot so it would be also stress free for you? I haven't seen anyone that invested in derivatives for their long term investment in crypto. There is also funding fee on derivatives which increases your liquidation price as long as the trade is open. You'll just lose money again if you're really planning to open a position at $14k and leave it for a long time. No one knows if your target price of $56k will certainly happen next. What if bitcoin's price will just consolidate between $15k-20k for some years then your suppossed to be profit just went to funding fee.