Introduction to Spot Trading

1. What is spot trading?

   Spot trading of cryptocurrencies refers to the process where two parties buy and sell a specific cryptocurrency at the current market price. For example, in the BTC/USDT trading pair, the price represents the amount of USDT needed to buy or that can be received for selling 1 BTC.

2. What are the characteristics of spot trading?

   ① Requires holding cryptocurrency to participate: Spot trading involves immediate settlement of funds and assets, with ownership transfer taking place through physical delivery.

   ② No need to trade physical assets: Transactions are conducted entirely in cryptocurrency.

   ③ No delivery requirement, suitable for long-term holding: Traders can hold their crypto assets for value appreciation or use them to buy other potentially appreciating tokens. There are no forced liquidation or position reduction rules.

   ④ Order matching mechanism: Market prices are determined by supply and demand. Prices are confirmed in real time through the market, ensuring transparency and openness.

3. What is a trading pair?

   A trading pair refers to two digital assets that can be exchanged for each other. For example, “BTC/USDT” means buying BTC with USDT or selling BTC to receive USDT.

4. What is a maker order and what is a taker order?

• Maker: A maker order is one that does not get filled immediately—such as a buy order below the best ask or a sell order above the best bid. These orders add liquidity to the market.

• Taker: A taker order is executed immediately—such as a buy order at or above the best ask, or a sell order at or below the best bid. These orders remove liquidity from the market.