What is spot trading and how it works in crypto?

Sonic Team

Author

Date of publishing : Feb 27, 2023 , 10:00 AM

Are you one of those, who are always fascinated by trading and building a fortune in the crypto market, but your trade usually ends up in loss? Then my friend I got your back, it happen with most of the newbies starting their crypto spot trading journey.

I know some of you might be thinking, "What the heck is spot trading?" Well, mate, it's simple. Spot trading in crypto means the same as in traditional markets, but here you buy or sell a digital asset at the current market price.

But spot trading isn't just about buying low and selling high. It's a complex world with many factors that influence the market. To be successful in spot trading, you need to dive into the crypto market.

Sonic wallet is here to help you learn everything you need to know about spot trading - from the basics of how it works to advanced trading strategies and techniques.

What is the crypto spot market?

A spot market is a basic market where crypto assets are instantly swapped and settled, and trading in this market includes purchasing digital currencies such as Bitcoin or other altcoins and hoarding them until their value rises. The term "spot trade" refers to transactions that are settled "on the spot." Spot markets also comprise vendors, buyers, and order books. Sellers put an order with a specified ask or sale price, and buyers place an order with a certain bid or purchase price for any cryptocurrency token. The bid price is the most a buyer is prepared to pay, while the asking price is the least a seller is willing to take as payment.

What is spot trading?

The most prevalent sort of trading in the cryptocurrency industry is spot trading. It entails the immediate purchase and sale of assets. It's more analogous to stock market day trading, in which investors acquire and sell assets in a single day.

Spot trading is a popular method of trading cryptocurrencies because it is straightforward and does not have the same amount of commitment as other methods of trading. Spot trading can also be used to hedge against future price fluctuations in the underlying asset. Do you believe the price of a cryptocurrency is poised to skyrocket? You can purchase on the spot market. Do you believe a cryptocurrency is poised to crash? You can spot trade crypto on Sonic wallet without any fees.

Advantages of Spot Trading

Spot trading provides various advantages over other trading methods, such as margin trading or futures trading. Spot trading has several advantages:

1. It is considerably simpler and easier to grasp, making it the finest option to enter the bitcoin market. It will provide you with a thorough grasp of the market and how to trade cryptocurrencies.

2. There is no need to be concerned about complicated contract terms or leverage management.

3. Spot trading, as opposed to derivative trading, gives exposure to the underlying asset. This means that you may profit from changes in asset price rather than merely price movement direction.

4. Rather than waiting for a contract to expire, you may take advantage of market possibilities as they come.

Advantages of Spot Trading using Sonic Wallet

There are several advantages of using the sonic wallet for your crypto spot trading. Zero Fees: there are zero fees on Sonic wallet for trading cryptocurrencies.
User-friendly interface: Sonic wallet provide an intuitive platform experience so that you can trade without any technical knowledge.
No Jargon: On Sonic wallet, there is no jargon on the platform everything is crystal clear on the app.

Conclusion

Spot trading cryptocurrency may be a lucrative method to generate money, but it is also risky. Although spot trading can be a fantastic method to earn quick money, there is no certainty that you will benefit, and you could lose money if the market falls.

It's vital to note that the cryptocurrency market is highly volatile, with values changing often. This means that investors must exercise caution when deciding which assets to trade and must have a thorough grasp of the market before they begin.

Sign up on Sonic Wallet to try crypto spot trading today!