Spot trading (Spot) is a basic mode in cryptocurrency trading, suitable for beginners. In simple terms, spot trading is directly buying and selling ownership of cryptocurrencies. Regardless of price fluctuations, the amount of coins you hold will not change.

Core features:

  1. No leverage: You buy and sell assets with the amount of capital you invest;

  2. Immediate settlement: The asset immediately belongs to the buyer after the transaction, and can be withdrawn to a personal wallet;

  3. Risk controllable: There is no risk of liquidation, and the maximum loss is limited to the principal.

Spot trading is like shopping at a supermarket. You bring cash (like USDT), choose a product (like BTC), and after paying, the product belongs to you. You can take it home and wait to sell it when it appreciates.

🏷️ How to profit from spot trading

  1. Spread profit

    1. Buy low, sell high: The most direct way, investors buy at lower prices based on their judgment of the asset's future trend and sell when the price rises to earn the difference.

    2. Swing trading: Combining technical analysis (candlestick, moving averages, trading volume, etc.) to enter and exit multiple times in obvious price fluctuations, aiming for short to medium-term profits.

  2. Arbitrage strategies

    • Cross-platform arbitrage: Taking advantage of price differences of the same asset between different exchanges, such as buying on exchange A and selling at a higher price on exchange B.

    • Triangular arbitrage: Using the small price differences between the BTC/USDT, ETH/USDT, and ETH/BTC trading pairs for circular trading on the same platform.

    • Stablecoin arbitrage: Seeking interest rate differences between different chains or different stablecoins.

  3. Regular investment

    • Regularly (e.g., daily/weekly) purchasing a fixed amount, not pursuing the lowest point at once, but averaging costs and smoothing fluctuations. Over the long term, this can reduce the average cost of purchases.

  4. Grid trading

    • Automatically place buy and sell orders at a fixed spread within a preset range, buying low and selling high in sequence, suitable for a volatile market.

    • Tools: Grid robots from centralized platforms, third-party quantitative software.

  5. Holding assets for interest

    • Staking: Locking spot tokens in the network to receive block rewards or staking rewards;

    • Lending interest: Depositing tokens into lending protocols (like Aave, Compound) to earn lending interest.


If you are a beginner, I recommend starting with spot trading because it is simple and transparent, without worrying about complex leverage and liquidation operations, suitable for familiarizing yourself with the cryptocurrency market.