What is Spot Trading?
Spot trading refers to the type of transaction where cryptocurrencies are bought or sold instantly (on the spot). That means, when you place an order and it gets executed, the coins are immediately transferred to your wallet.
Features of Spot Trading on Binance:
1. Market & Limit Orders:
Market Order: You buy or sell immediately at the current market price.
Limit Order: You set a specific price at which you want to buy or sell. The trade is executed only when the market reaches that price.
2. Various Trading Pairs:
Examples:
BTC/USDT
ETH/BUSD
Here, you are buying the first coin using the second coin as payment.
3. Low Fees:
Binance offers very low transaction fees for spot trading (typically 0.1%). If you use BNB to pay fees, you get an additional discount.
4. Large List of Coins & Tokens:
Binance supports thousands of tokens and coins available for spot trading.
5. Advanced Trading Interface:
You can view charts, indicators, order books, trade history, and more—ideal for professional traders.
Advantages of Spot Trading:
Simple and lower-risk (no leverage involved)
Good for holding or long-term investing
Allows step-by-step buying/selling based on market analysis
