Introduction to Spot Trading

1 min. readlast update: 07.04.2025

What is Cryptocurrency Spot Trading?

Cryptocurrency spot trading refers to the buying and selling of a specific cryptocurrency at the current market price between two parties. For example, in a BTC/USDT trading pair, the price reflects the amount of USDT required to purchase or the amount received for selling 1 BTC.

Features of Spot Trading

  1. Entry Requires Cryptocurrency : Spot trading involves a direct exchange of ownership, executed through physical settlement.

  2. Traders do not need to trade any physical assets :Transactions circulate in the form of cryptocurrencies without the need for trading any physical assets. 

  3. Long-Term Holding with no settlement requirements: Traders can hold purchased cryptocurrency for appreciation or use it to buy other potentially appreciating tokens. There are no mandatory liquidation or reduction rules.

  4. Matched transactions: Market prices are determined by supply and demand, with product prices being verifiable at any time in the market, ensuring publicity and transparency.

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