Trading in the context of blockchain usually refers to buying, selling, or exchanging cryptocurrencies or tokens through online platforms called crypto exchanges.
Types of Crypto Trading:
1. Spot Trading: Buying or selling a cryptocurrency for immediate settlement (e.g., buying Bitcoin with USDT).
2. Margin Trading: Borrowing funds to trade larger amounts—high risk and high reward.
3. Futures Trading: Speculating on the future price of a cryptocurrency via contracts.
4. P2P Trading (Peer-to-Peer): Direct trading between users without intermediaries.
5. DEX Trading (Decentralized Exchanges): Trading on blockchain-based platforms without a central authority (e.g., Uniswap, PancakeSwap).
Key Terms:
Order Book: List of buy and sell orders.
Limit Order: You set the price you're willing to pay/sell.
Market Order: Executes immediately at current market price