Spot Trading is one of the common types of trading, and it is considered the simplest and fastest type of trading.
✅ Definition of Spot Trading:
It is the process of buying or selling cryptocurrencies directly at the current market price, and the transaction is settled immediately (or almost immediately), which is why it is called "Spot."
🛒 Practical example:
If you own USDT (a stablecoin), and you want to buy BTC (Bitcoin), go to the spot trading section, set the amount, and execute the order.
📌 Its main features:
Feature Explanation
Speed The transaction is completed immediately after the order is executed.
No leverage Meaning you do not borrow funds, you only trade with what you own.
You own the asset After purchase, you actually own the currency (like BTC or ETH).
Lower risk Compared to leveraged trading (derivatives).
📊 Types of orders in spot trading:
1. Market Order
You buy or sell instantly at the best available price.
Fast but the price is not completely guaranteed.
2. Limit Order
Set the price at which you want to buy or sell.
The transaction is only executed if the market reaches that price.
3. Stop-Limit Order
It is used to reduce losses or lock in profits.
It combines "Stop Order" and "Limit Order."
📱 How to enter the spot trading section in Binance:
Select from the "Trade" menu
Choose "Spot" or "Spot."
Find the trading pair (e.g., BTC/USDT).
Choose the order type and enter the amount.
Click "Buy" or "Sell."
📌 Tips for beginners:
Start with small amounts to learn.
Watch the market movements and don't rush.
Use limit orders to avoid price volatility.
Follow the news, as it greatly affects the price.