What Is Spot Trading In Crypto & How To Get Started With Spot Trading: A Comprehensive Guide For 2024

With the rapid development of cryptocurrency, spot trading, a new trading model in the realm of crypto, has witnessed growing popularity and increasing adoption among crypto traders and enthusiasts. Spot trading in crypto refers to the process of buying and selling digital currencies at their current market prices, enabling traders to own the digital assets they acquire.

In this guide, we will cover all aspect about crypto spot trading, like what spot trading is, how does spot trading work, its advantages and disadvantages, etc. Through this article, you will get a clear picture about this investment strategy,thus making informed decisions when using this investment method.

Table of Contents

What is Spot Trading in Crypto?

How does Crypto Spot Trading Work?

Pros and Cons of Crypto Spot Trading

Spot Trading Vs. Futures Trading

Crypto Spot Trading vs. Margin Trading

How to Get Started With Spot Trading?

A Beginner’s Guide: How to Start Crypto Spot Trading On BTCC

Conclusion

FAQs About Spot Trading

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What is Spot Trading in Crypto?

Spot trading usually refers to a trading strategy where traders buy or sell the underlying crypto asset at a current market price, and the transaction is instantly settled. Typically, spot trading in cryptocurrencies means acquiring tokens at a lower price and selling them at a higher price. Nevertheless, profitability is not assured due to the inherently volatile nature of the cryptocurrency market, and the ability to transform trades into profits hinges on an array of diverse factors.

This trading method is frequently preferred by novice traders due to its simplicity and the fact that it allows them to own the digital assets they acquire. The objective of spot trading is to acquire digital currencies at their current market values and then sell them at higher prices, thereby realizing a profit.

How does Crypto Spot Trading Work?

In the realm of cryptocurrency, spot trading can be done through a diverse array of platforms that allow traders to engage with digital currencies. These platforms empower traders to buy cryptocurrencies either by utilizing their local currencies or by engaging in trade across several cryptocurrency pairs.

To embark on spot trading, a trader must first select a reputable platform that aligns with their trading needs and preferences.  Once a suitable platform is chosen, the trader must establish an account, which typically involves completing a registration process and verifying their identity for security purposes.

Subsequently, the trader needs to fund their account. This can be achieved by transferring fiat currency from a bank account or debit/credit card, or by transferring existing cryptocurrencies from another wallet into the trading platform’s wallet.

With a funded account, the trader can then proceed to select the cryptocurrency pair they wish to trade. The trader then enters the amount they want to trade and places an order. This order is executed as soon as it matches with a corresponding order in the order book, and the trader receives their acquired crypto in their account.

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Pros and Cons of Crypto Spot Trading

Compared with crypto derivatives, spot trading in crypto is a low-risk financial instrument. However, like any trading method, spot trading in crypto has its advantages and disadvantages. The following chart sets forth the advantages and disadvantages of crypto spot trading:

Spot Trading vs. Futures Trading

Crypto futures is another popular investment method in crypto market. Crypto futures trading usually refers to a market segment that allows traders to engage in speculation regarding the future pricing of cryptocurrencies. For instance, a trader may buy a futures contract requiring them to purchase Bitcoin at a predetermined price in the future. Here are some of the key differences between spot trading and futures trading:

Crypto Spot Trading vs. Margin Trading

Margin trading is another popular investment strategy in crypto market. Margin trading allows users to borrow funds against their holdings to create leveraged long or short positions. This significantly enhance both the potential for profits and the risk of losses. Additionally, borrowing these funds necessitates the payment of interest in exchange for having access to leveraged trading. To commence a margin trade, the investor is required to commit some collateral, which is known as the margin.

Comparing with margin trading, crypto spot trading  is a simpler process and thus easier to manage in terms of risk. This is because leveraged trading with margin amplifies both risk and reward, which means in the worst case, investors may potentially lose all their initial investment much faster than spot trading.  However, a downside to spot trading is the potential gains that investors may obtain are never as much as alternative trading methods offer. Since margin trading offers leverage, the upside is potentially much higher than spot trading.

How to Get Started With Spot Trading?

To invest in spot trading in crypto, the first step is choosing the crypto exchange. Here’s a step-by-step process to get started with spot trading in crypto:

Step 1:Choose a crypto exchange and create an account, and submit relevant KYC documents.

Step 2: Deposit money into your crypto wallet.

Step 3: Place your spot trading order to buy a crypto token.

Step 4: The transaction is done once the order matches the sell order.

A Beginner’s Guide: How to Start Crypto Spot Trading On BTCC 

Currency	Pair	Price	+2% Depth	-2% Depth	Volume	Volume %
Pepe	PEPE/USDT	$0.000019400000	$25,223.25	$61,838.20	$1,438,494,584.73	12.44%
Bitcoin	BTC/USDT	$97,238.19	$872,771.35	$588,711.40	$853,975,173.10	7.38%
First Digital USD	FDUSD/USDT	$1.00	$0.000000000000	$0.000000000000	$824,002,014.02	7.12%
XRP	XRP/USDT	$1.11	$245,341.56	$462,647.11	$637,272,758.73	5.51%
Cardano	ADA/USDT	$0.78	$179,863.93	$378,615.46	$447,447,285.19	3.87%
Dymension	DYM/USDT	$1.48	$0.000000000000	$0.000000000000	$356,972,410.28	3.09%
Bonk	BONK/USDT	$0.000053070000	$11,191.29	$7,721.90	$328,892,443.88	2.84%
Shiba Inu	SHIB/USDT	$0.000024140000	$63,775.92	$27,843.91	$291,345,962.06	2.52%
Sui	SUI/USDT	$3.53	$20,445.18	$23,704.31	$289,633,840.81	2.5%
FLOKI	FLOKI/USDT	$0.00026022	$3,825.41	$4,186.87	$251,632,792.24	2.18%

BTCC, one of the longest-running crypto exchanges in the world, offers a variety of advanced trading services, like copy trading, spot trading and USDT-margined perpetual futures contract trading with a leverage up to 500×, etc. If you want to start spot trading, you can start by signing up for  BTCC.

The following sets forth a step-by-step guide for starting spot trading on ceypto exchange BTCC:

Step One: Create a BTCC account

Before you start spot trading, you need to register a BTCC account using an Email ID or Mobile Number, then finish KYC verification.

Step Two: Fund Your Account

After completing KYC verification, the next step is fund your BTCC account. There are three methods available for funding your BTCC account, including fiat deposit, crypto deposit and convert.

Step Three: Place Your Spot Trading Order

Go to the BTCC homepage and select “Spot” > “Spot Trading”, then enter the spot trading page.

On the left side of the page, hover your cursor on the dropdown beside the trading pair, and you will see all supported Spot trading pairs, along with the Current Price and the 24-hour change percentage of the corresponding trading pair.

To quickly find the trading pair you desire, please use the search box to directly enter the trading pair you want to view. Then you need to complete all settings for your spot trading order.

Firstly, select Buy/Sell

Second, select order type. BTCC Spot Trading provides you with various order types, including Limit Order, Market Order, Trigger Limit and Trigger Market.

• Limit Order:Limit orders are a type of order to buy or sell at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
• Market Order: users place orders at the best price in the current market to achieve fast trading.
• Trigger Limit: A Trigger Limit order lets traders set the stop price, limit price, and order amount for a trade. When the stop price is reached, the order will be placed automatically at the predetermined limit price and order amount so as to help traders ensure a profit or limit a loss.
• Trigger Market: A Trigger Market order allows traders to set the limit price of a stop-limit order to the market price. traders need to define the stop price and order amount, and when the stop price is reached, your order will become a market order and be filled instantly.

Third, after selecting the order type, enter the order amount, cryptocurrency amount, and leverage below.

Finally, check all information and confirm your order.

After placing your spot trading order, you can check your order and trading history on the spot trading page.

Note: Since spot trading feature has been debuted on BTCC on early July, there are more and more tradable pairs supporting spot trading on both BTCC web and app platforms. At present, there are 119 spot trading pairs offered on BTCC platform. If you are interested in spot trading, you can start by registering on BTCC.

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Conclusion

Spot trading in crypto represents a renowned strategy traders use when buying and selling the underlying crypto asset wherein the transaction is determined instantly. To gain maximum profits, spot traders buy any crypto token at a relative low price and then sell it at a high price.

However, it’s crucial to note that profitability in spot trading is not always assured due to the inherent volatility of the cryptocurrency market. Therefore, novice traders are advised to seek professional financial guidance and invest only what they can afford to lose.

FAQs About Spot Trading 

What is spot trading in crypto?

About BTCC

BTCC, one of the longest-running exchanges in the world, supports crypto copy trading, spot trading, as well as futures trading for 300+ cryptocurrencies with a leverage ranging from 1Χ to 500Χ.  If you want to trade cryptocurrency, you can start by signing up for BTCC.

BTCC is among the best and safest platforms for crypto trading. The reasons why we introduce BTCC for you summarize as below:

• Industry-leading security
• High liquidity & volume
• Extremely low fees
• High and rich bonus
• Excellent customer service

BTCC Exchange FAQs

Is BTCC Legit?

With a long operation history of 13 years, BTCC boasts an impressive user base and a stellar track record. As one of the oldest exchange around the world, BTCC puts a strong emphasis on conducting business in various countries and regions under the premise of lawfulness and compliance. Currently, BTCC has obtained regulatory licences in a variety of countries.

Specially, BTCC received a crypto licence issued by the Financial Crimes Enforcement Network (FinCEN) in the USA, a crypto licence issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). In 2022, BTCC also received a cryptocurrency licence from the Registrar of Legal Entities of Lithuania, enabling the platform to offer crypto trading services in Lithuania and other European countries.

Can Canadian Investors Buy Cryptos on BTCC?

Of course, BTCC is legit in Canada as it has already received a crypto licence issued by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Canadian traders can log in BTCC to trade cryptos with highest security level and most competitive fee.

How To Open a BTCC Account?

Opening an account on BTCC is quite easy.

Firstly, you need to click the “register” button on the right corner of BTCC homepage.

Then, you can create an account using an Email ID or Mobile Number.

How to Trade Crypto Futures on BTCC?

BTCC offers Perpetual Futures contracts with a leverage of up to 500×, you can buy over 300 cryptocurrencies on BTCC at the most competitive price and highest security.

The following sets forth the guidance for trading futures on cryptocurrency exchange BTCC:

Step One: go to the BTCC homepage and log in to your BTCC account. If you do not have an account, you need to register first.

Step Two: go back to the BTCC official homepage, choose “Deposite”, and then fund your account with your preferred method (fiat deposit, crypto deposit or convert).

Step Three: go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”, and find the crypto trading pair.

Step Four: choose the contract trading order type. Futures contract orders on BTCC platform are divided into market orders, limit orders and SL/TP orders.

• Market Order: users place orders at the best price in the current market to achieve fast trading.
• Limit Order: Limit orders are a type of order to buy or sell futures at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
• SL/TP Order: SL/TP orders are a type of order to buy or sell futures at a price less favourable than the market price. When you buy at a price higher than the market price or sell at a price lower than the market price, the order will be in the form of a SL/TP order.

Step Five: adjust the leverage multiple.

Please keep in mind that operating leverage carries the risk of liquidation. Leverage should be adjusted based on your financial status and risk tolerance.

Step Six: choose the lot size and set the SL/TP price .

Step Seven: after setting the basic data information, users can choose to buy (open long) or sell (open short) after entering their ideal price. Traders should remind that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform.

Step Eight: click the buy or sell button, and the crypto futures contract order is completed.

Is BTCC the Best Exchange Option for You?

If you put your trading priorities on leading cryptocurrencies like Bitcoin, probably BTCC is the best exchange choice for you. Besides, BTCC also support trading for a variety of popular meme coin (including PEPE, DOGE, SHIB, WIF, etc.) with a leverage ranging from 1Χ to 500Χ. If you are interested in trading meme coins, BTCC is also a top choice for you. Furthermore, BTCC offers a very friendly platform for all categories of traders: both experienced and beginners.

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