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
-
Entry Requires Cryptocurrency : Spot trading involves a direct exchange of ownership, executed through physical settlement.
-
Traders do not need to trade any physical assets :Transactions circulate in the form of cryptocurrencies without the need for trading any physical assets.
-
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.
-
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.