What is cryptocurrency spot trading?

What is cryptocurrency spot trading?

Cryptocurrency spot trading refers to the buying and selling of a certain cryptocurrency by both parties at the current market price. Taking the BTC/USDT trading pair as an example, the price of this trading pair is the amount of USDT that needs to be paid/obtained to buy/sell 1 BTC.

Characteristics of spot trading?

① Entry requires holding cryptocurrency: The method of spot trading is to clear both money and goods, with the purpose of transferring ownership, and is carried out through physical delivery;

② Traders do not need to buy or sell any physical assets and circulate in cryptocurrency;

③ Long term holding without delivery requirements: Traders can wait for the appreciation of cryptocurrencies when buying them, or they can use them to buy other tokens that may appreciate. Non mandatory liquidation, reduction of positions and other systems;

④ Matchmaking transactions: Market prices are determined by supply and demand, and their commodity prices can be confirmed at any time through the market, with openness and transparency.