What is Spot Trading
Overview
Spot trading is the buying and selling of cryptocurrency at the current market price with an immediate exchange of assets.
During a trade, one asset is exchanged for another instantly:
- buying cryptocurrency with USDT
- selling cryptocurrency for USDT
- exchanging one cryptocurrency for another
Example:
You buy BTC with USDT. After the order is executed, BTC is immediately credited to your cryptocurrency account.
How Spot Trading Works
In spot trading, a user creates an order to buy or sell cryptocurrency.
Example:
- You have 1,000 USDT
- You select the BTC/USDT trading pair
- You create an order to buy BTC
- After the trade is executed:
- USDT is deducted from your account
- BTC is credited to your balance
The selling process works in the opposite way:
- You sell BTC
- BTC is deducted from your account
- USDT is credited after the order is executed
What Is a Trading Pair
A trading pair shows which asset is used to buy or sell another asset.
Examples:
- BTC/USDT — buying or selling BTC with USDT
- ETH/USDT — buying or selling ETH with USDT
The first currency in the pair is the asset being bought or sold.
The second currency is the quote currency used for settlement.
Order Types
Market Order
A market order allows you to buy or sell cryptocurrency at the best available current market price.
Suitable when you want to complete a trade quickly.
Example:
Buy BTC immediately at the current market price.
Limit Order
A limit order allows you to set the price at which you want to buy or sell an asset.
The order will be executed only when the market reaches the specified price.
Example:
Buy BTC when the price drops to 90,000 USDT.
Trading Fees
A trading fee is charged when an order is executed.
The fee amount depends on the platform conditions and may be calculated based on the trading volume.
Benefits of Spot Trading
- Simple way to buy and sell cryptocurrency
- No leverage is required
- Purchased assets are stored directly in your account balance
- Suitable for long-term holding and regular trading
Important
- Cryptocurrency prices can change after purchase
- Profit is not guaranteed
- Always check the selected trading pair and transaction amount before confirming a trade
- Trading digital assets involves the risk of losing funds.