How to Play Spot Trading in the Crypto World?
Must-read for Crypto Newbies! Complete Analysis of Spot Trading Rules and Pitfall Guide!
If you're just entering the crypto world to trade spot, you must understand these rules! Otherwise, you might get cut unexpectedly. Today, I have organized an extremely detailed spot trading guide for everyone. It's recommended to save it and read it slowly~
1. What is Spot Trading?
Simply put: Using real money to buy coins (for example, buying BTC with USDT), once bought, it’s yours to hold long-term, unlike contracts which have liquidation risks. Suitable for: People who don’t want to play high-risk contracts and prefer to accumulate coins and do long-term holding.
2. Basic Rules of Spot Trading
Trading Pair: For example, BTC/USDT means buying Bitcoin with USDT.
Types of Orders:
- Limit Order: Set your own price and wait for the order to be filled (suitable for those who are not in a hurry).
- Market Order: Execute immediately at the current market price (suitable for quick buying and selling).
Transaction Fee: Generally around 0.1%, some platforms offer discounts (for example, paying with platform tokens).
3. Pitfalls to Watch Out For!
Slippage: When market volatility is high, market orders may be executed at higher/lower prices; it’s recommended to use limit orders!
Withdrawal Rules: Some platforms require verification for withdrawals, especially for large amounts, confirm in advance!
Minimum Trading Volume: For example, you must buy at least 0.001 Bitcoin; don’t mistakenly input wrong amounts!
4. Tips for Spot Trading
Dollar-Cost Averaging Strategy: Invest a fixed amount monthly to average your costs, suitable for those who are bullish on a certain coin in the long term.
Take Profit and Stop Loss: Set selling prices in advance to avoid greed or panic trading.
Pay Attention to Liquidity: Coins with too low trading volume can be easily dumped!
Spot trading has lower risks compared to contracts, but it requires larger capital and higher time costs!
However, as long as you find reliable and suitable coins, and position yourself in advance for the upcoming bull market, the returns will be at least tenfold!
If you are also confused recently about spot and contract trading, feel free to consult!
Daily Attention: PORTAL REI MASK
