Trading spot is a bit different than futures trading, as you do actually need to own the underlying asset. Crypto spot trading requires traders to purchase a crypto, such as Bitcoin, and hold it until the value increases, or use it to buy other altcoins that they think may rise in value.
In the crypto derivatives market, investors do not own the actual crypto. Rather, they trade based on speculation of the crypto market price. Traders can choose to go long if they expect the value of the asset to rise, or they can go short if the value of the asset is expected to fall.
All transactions are done on contract, so there is no need to purchase or sell any actual assets.