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Spot Trading

Spot trading is buying or selling crypto directly at an agreed price. You trade the cryptocurrency itself, not a contract based on its price.

Last updated • 2 min read
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What is spot trading?

With spot trading, you buy or sell Bitcoin, for example, and your account balance changes. The spot price is the crypto’s current trading price. It can vary from one crypto exchange to another.

You usually trade using a trading pair, such as BTC/EUR. This means you buy or sell Bitcoin and see its price in euros. On a crypto exchange, buy and sell orders are matched. A market order lets you buy or sell at available prices. With a limit order, you set the highest price you’re willing to pay or the lowest price you’re willing to accept.

After a transaction on a centralized platform, your balance is usually updated. That doesn’t automatically mean the crypto is sent right away to your own crypto wallet on the blockchain.

An example of spot trading

Someone buys 0.01 BTC at €40,000 per bitcoin. They pay €400, excluding fees. This is spot trading because they’re buying 0.01 BTC itself.

If they later sell the same amount for €45,000 per bitcoin, they receive €450. The difference is €50 before fees. However, the value can also fall, which means selling may bring in less.

Why is spot trading important in crypto?

Spot markets are one way to buy and sell crypto. Supply and demand in these markets help shape prices. That’s why you’ll see spot trading mentioned in discussions about trading pairs, exchange listings, and liquidity.

The difference between spot trading and derivatives is important. Spot trading involves the cryptocurrency itself. A futures contract is a financial contract tied to the price.

Spot trading doesn’t protect you from price drops. Fees, low liquidity, and the difference between buy and sell prices can affect your results. Some platforms also combine spot trading with borrowed funds. This brings additional interest and liquidation risks.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.