What is spot trading?
Spot trading refers to the use of one cryptocurrency to exchange for another cryptocurrency through transactions. Taking the BTC/USDT trading pair as an example, users can use USDT to buy BTC through the BTC/USDT trading pair, and vice versa, they can also sell BTC and convert to equivalent USDT.
How to make profit through spot trading?
Traders can earn income by buying low and selling high to earn the price difference in spot trading. Taking BTC/USDT as an example, the user buys 1 BTC when the price of BTC is 16,000 USDT. When the market rises to 18,000 USDT, the user will sell the BTC he bought, and the user's profit is 18000-16000=2000 USDT without considering the trading fee.
What are the advantages of spot trading?
In the process of currency exchange using legal tender as an intermediary, if you want to sell USDT for BTC, you need to sell USDT first, convert it into legal tender, and then use legal tender to buy BTC. However through spot transactions, you can directly use USDT To buy BTC, only one transaction operation is required, which greatly reduces the time consumed and can respond to the market faster and more timely.