How to operate in spot trading?
Today let's talk about how spot trading actually generates income.
1. Spot Trading = Buy Low, Sell High, Profiting from the "Price Difference" of Currency Appreciation
Here's a simple example:
You bought 1 Dogecoin at 1U, and later it rose to 1.5U. When you sell it, you've made a profit of 0.5U, a 50% increase. In this process, there’s no leverage, no risk of liquidation. If the price goes up, you profit; if it goes down, you lose, but you'll never go to "zero" or face "liquidation". This is the most basic way to profit and also the most stable in the crypto world.
2. How to choose the right timing? The real key to making money in spot trading lies in "rhythm"
Many people lose money in spot trading not because they are wrong about the direction, but because their timing is off: When others shout "the bull market is here," you rush in to buy at a high point. When it drops, you panic and sell, only to see it rebound right after you sell. You always buy at the top and sell at the bottom. This isn’t a problem with spot trading; it’s an emotional problem. The core of making money isn’t about which coin you bought, but whether you have patience, strategy, and a plan in advance.
3. Real money-making spot traders focus on "cycle price differences"
Most people profit from small fluctuations, while experts profit from the larger trends over a cycle. For example: In the early stages of a bull market, they accumulate altcoins and sell in batches after a 5-10x rise, and in the mid-bear market, they dollar-cost average into mainstream coins, patiently holding for a year to multiply their investment. When specific sectors explode (like AI or Meme), they have positioned themselves in advance to ride the wave. They do not profit from frequent trading, but from understanding and waiting.
4. How do beginners trade spot more steadily?
Here are a few suggestions:
✅ Start with mainstream coins
BTC and ETH are good choices for beginners; they are resilient, have good liquidity, and are not easily manipulated by whales.
✅ Control your position; don’t go all in at once
Buy and sell in batches, leaving some room for yourself to adjust strategies if the market reverses.
✅ Hold steady and secure
Spot trading isn’t meant for daily monitoring; it’s for positioning in a larger trend. The more frequently you trade, the more easily you can be swayed by emotions.
In summary:
The essence of spot trading is to buy low and sell high, but true profit relies on advance positioning, patient holding, and understanding cycles.
Don’t think of spot trading as "slow"; slow is the way to survive longest and earn most steadily in the crypto world.
