Day 9 of 100: Understanding Spot Trading on Binance
Today, let’s dive into Spot Trading, the most common and beginner-friendly way to trade on Binance.
What is Spot Trading?
Spot trading is the act of buying or selling cryptocurrencies immediately at the current market price (also known as the spot price). Once the trade is executed, the crypto is transferred directly to your wallet—no delays, no loans.
Example:
If you buy 10 USDT worth of BTC in spot trading, you will instantly receive BTC worth 10 USDT in your Binance spot wallet.
Key Features of Spot Trading:
You must own the asset you’re trading with (no borrowing).
Trades are settled immediately.
You can hold the asset for as long as you want, or sell it when the price goes up.
Spot vs. Futures:
Spot = You own the real asset.
Futures = You're trading contracts, often using leverage.
How to Spot Trade on Binance:
1. Go to [Trade] → [Spot].
2. Choose the pair you want to trade (e.g., BTC/USDT).
3. Select your order type:
Market Order = Buy/Sell instantly at current price.
Limit Order = Set your own price to buy/sell.
4. Enter the amount and click Buy or Sell.
Tip of the Day:
Start by using Market Orders to understand how prices move. Once you're comfortable, try Limit Orders to buy at lower prices.
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