I am going to explain in simplest possible way the big differences!

SPOT

When you use spot to trade you are buying an actual asset

You can transfer it, hold it for as long as you like, send to friends, it is usually used to buy for long term investment, micro-caps coins that can 100x in few days but it is also the safest way of trading.

LEVERAGE

Leverage is part of Futures trading. You do not buy the actual asset, instead you speculate on the price whether it will go up or down in price the amount of leverage you choose decides the risk you take. The higher the leverage the higher the risk of loosing your money if the price touches the liquidation mark. This is usually used for short term trades to earn maximum yield on coins that do not move much, but also on big moves in price, and here is where most people loose money trading. Greed takes over because you can make so much money in such short time pretty much on any coin that offers 100x leverage or even 20x

So there you have it, be careful guys if you decide to try leverage - it can very quickly turn into a gabling spree!