- *Immediate Settlement*: Transactions are settled instantly, with the buyer receiving the cryptocurrency and the seller receiving the payment.
- *Real-Time Pricing*: Trades are executed at current market prices.
- *Ownership Transfer*: The buyer gains ownership of the cryptocurrency immediately.
*How Spot Trading Works:*
1. *Deposit Funds*: Traders deposit funds into their exchange account.
2. *Place Orders*: Traders place buy or sell orders on the exchange.
3. *Order Matching*: The exchange matches buy and sell orders based on price and quantity.
4. *Trade Execution*: The trade is executed, and the cryptocurrency is transferred to the buyer's account.
*Benefits:*
- *Simple and Straightforward*: Spot trading is a straightforward way to buy and sell cryptocurrencies.
- *No Expiration Dates*: Trades are settled immediately, eliminating expiration dates.
- *Ownership*: Buyers gain immediate ownership of the cryptocurrency.
*Risks:*
- *Market Volatility*: Cryptocurrency prices can fluctuate rapidly.
- *Liquidity Risks*: Insufficient liquidity can impact trade execution.