What is the Spot Market? ⠀
To understand it, let's give a simple example. There used to be people walking the streets who always had cash with them. They walked around looking for clients to whom they could offer their cash at a good rate.
Well, they do buy/sell transactions "on the spot".
You give a euro, get a dollar in your hand and go home to hide it under your mattress. That is, the payment is made instantly, in real money.
This is the spot market, the place where financial instruments are traded with "immediate delivery.
There are other markets where it's not so simple and not so immediate. For example, in
the futures market, assets are delivered on a certain date in the future (when the futures contract expires). This is derivative trading, not actual money in the account.
In crypto on the spot market, you are free to exchange some coins for others. For example, if you need ETH and you have USDT to buy, you simply go to the ETH/USDT spot market and make a trade.
Spot trading is one of the easiest ways to trade cryptocurrencies. Buy bottom during a bear market and then sell in a bull market. The main thing is patience and the right choice of an asset to buy. Do you trade cryptocurrencies on the spot market?
Yes -
No -
Crypto_Ocean
