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Spot Trading
Spot trading is the process of buying or selling cryptocurrencies for immediate delivery at the current market price, known as the "spot price." In spot trading, the buyer pays for the asset upfront, and the seller delivers the asset immediately. This is different from derivatives trading, where traders speculate on future prices through contracts without owning the underlying asset. Spot trading is the most common form of trading in the crypto market, and it takes place on centralized and decentralized exchanges alike. For example, buying Bitcoin on an exchange like Binance or Coinbase is an example of spot trading, where the trade is settled instantly.
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