Crypto Spot Trading

Spot trading in crypto means buying or selling the actual coins at the current market price, with settlement right away. If you buy 0.5 BTC on the spot market, you own 0.5 BTC and can withdraw it to your own wallet. It is the simplest way to trade crypto: there is no expiry, no funding payment and, without margin, no liquidation. This lesson covers how spot trading works in practice, the costs involved and how to manage risk. The broader introduction is in Crypto Trading.

Trading pairs#

Crypto trades in pairs, like currencies:

Stablecoin pairs are the most common base. See Stablecoins.

Order types#

Fees#

Exchanges usually charge a maker fee (for limit orders that add liquidity) and a taker fee (for orders that remove it). Fees typically range from about 0.0% to 0.6% depending on the exchange and volume tier. On top of fees, you pay the spread and any slippage.

Spot vs derivatives#

See Perpetual Futures.

Sizing and risk#

Spot crypto is volatile. Bitcoin's daily moves of 3% to 5% are common, and altcoins can move 10% or more in a day.

• Risk a fixed amount per trade, using a stop and sizing from the stop distance. See Position Sizing.
• Use volatility based stops. See ATR (Average True Range).
• Diversify carefully: most altcoins are highly correlated with Bitcoin. See Correlation Management.
• Plan exits before entry. See Exit Mechanics.

Custody choices#

See Blockchain Basics and Centralized vs Decentralized Exchanges.

Taxes and records#

In many countries, selling crypto, swapping one token for another or spending it can be a taxable event. Keep records of every trade, including dates, amounts, prices and fees. See Record Keeping for Traders.

Common mistakes#

• Using market orders in thin markets, causing large slippage.
• Chasing pumps after large moves. See FOMO.
• Keeping all funds on one exchange.
• Ignoring fees on frequent trading.

Frequently asked questions#

What is spot trading in crypto?#

Buying or selling actual cryptocurrency at the current market price, with immediate settlement and ownership.

Is spot trading safer than futures?#

Without margin, spot trading avoids liquidation and funding costs, though prices can still fall sharply.

What are maker and taker fees?#

Maker fees apply to orders that add liquidity to the order book, usually limit orders; taker fees apply to orders that fill immediately against existing orders.

Next, learn the most traded crypto derivative in Perpetual Futures.