[Gate.io: for beginners] What is spot trading? Trading method


Leverage trading and spot trading in virtual currency trading can be done on most virtual currency exchanges. There are so many people who trade in kind while trading, so you should remember that. I will explain how to operate it, so I hope you can refer to it.

What is spot trading?

Physical transactions, as the name suggests, refer to transactions in which physical goods and cash are traded at the time of settlement. It is a very common trading method that you can buy with your own funds only, and if you sell it, you can sell the actual item you own. When selling, it is assumed that you have virtual currency in advance. In other words, when you first start, you can only enter from buying.

Advantages of spot trading

The advantage of spot trading is that no matter how much the loss increases, you will not lose more than your cash on hand. When buying and selling virtual currencies, profits and losses occur as a result of price fluctuations. As long as you invest in spot trading, it is an advantage that there is no risk of loss and debt.

Disadvantages of spot trading

It is to enter only from buying. Since it is a physical item, you cannot sell it unless you first own it. You should wait until the price drops before buying. Therefore, you will have to wait for the timing to make a profit.

What is futures trading?

Futures trading is often compared to spot trading. A futures contract is a contract that promises to buy or sell a cryptocurrency in the future. Since the transaction takes place in the future, there is no physical delivery or settlement at the time of the futures contract. When trading futures, you are required to deposit margin money with the exchange. Unlike spot trading, you can also enter from selling.

How to start spot trading

To start trading, you must first open an account. I will introduce it in the article below, so I hope you can refer to it.

After opening an account, please log in first. Click “Spot trading” from “Trading” on the top left of the home screen.

Source : Gate.io

Since it will be the actual transaction screen, select “Purchase” on the right side of the screen. Enter the quantity and click “Purchase” at the bottom of the screen to complete the purchase of virtual currency. The center of the screen will be the chart. Also, the immediate left side of the purchase screen is the trading board, where you can see buy and sell orders in real time. At the bottom of the screen you will see your active orders. To make a payment, click the displayed order to make the payment.

Source : Gate.io

You can also switch currency pairs by clicking the currency pair on the upper left of the screen. A search box will also appear, so you can also search for your favorite currency pair.

Source : Gate.io