# Crypto Spot Trading

> Spot trading means buying and selling actual crypto at current prices. Learn order types, pairs, fees, sizing, custody and how spot differs from derivatives.

Source: https://learn.tradelabsai.com/crypto/crypto-spot-trading/  
Track: Crypto · Level: Beginner · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Crypto Spot Trading", https://learn.tradelabsai.com/crypto/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](https://learn.tradelabsai.com/markets/crypto-trading/).

## Trading pairs

Crypto trades in pairs, like currencies:

| Pair | Meaning |
|---|---|
| BTC/USDT | Bitcoin priced in Tether |
| ETH/USDC | Ether priced in USD Coin |
| ETH/BTC | Ether priced in bitcoin |
| BTC/USD | Bitcoin priced in US dollars (on exchanges with fiat) |

Stablecoin pairs are the most common base. See [Stablecoins](https://learn.tradelabsai.com/crypto/stablecoins/).

## Order types

| Order | Use | Lesson |
|---|---|---|
| Market | Fill immediately at the best available price | [Market Orders](https://learn.tradelabsai.com/orders/market-orders/) |
| Limit | Buy or sell only at your price or better | [Limit Orders](https://learn.tradelabsai.com/orders/limit-orders/) |
| Stop market | Trigger a market order at a stop price | [Stop Orders](https://learn.tradelabsai.com/orders/stop-orders/) |
| Stop limit | Trigger a limit order at a stop price | [Stop-Limit Orders](https://learn.tradelabsai.com/orders/stop-limit-orders/) |
| Post only | Only add liquidity, earning maker fees | [Post-Only and Reduce-Only Orders](https://learn.tradelabsai.com/orders/post-only-and-reduce-only-orders/) |
| OCO | Take profit and stop loss together | [OCO Orders](https://learn.tradelabsai.com/orders/oco-orders/) |

## 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.

**Example: The cost of a round trip**
You buy $5,000 of ETH with a market order at a 0.10% taker fee and later sell with another market order. Fees: $5 + $5 = $10. If the spread is 0.02% and slippage another 0.03% each way, add about $5. Total round trip cost is about $15, or 0.3%. Using limit orders with a 0.02% maker fee could cut fees to about $2. For a frequent trader, these differences matter a lot. See [All-In Trading Cost](https://learn.tradelabsai.com/orders/all-in-trading-cost/).

## Spot vs derivatives

| | Spot | Perpetual futures |
|---|---|---|
| Ownership | You own the coins | A contract, no coins |
| Leverage | None (unless margin trading) | Common, often high |
| Liquidation | No (without margin) | Yes. See [Liquidations in Crypto](https://learn.tradelabsai.com/crypto/liquidations-in-crypto/) |
| Funding | None | Periodic funding payments. See [Funding Rates](https://learn.tradelabsai.com/crypto/funding-rates/) |
| Shorting | Not possible without margin | Easy |
| Withdraw to wallet | Yes | No |

See [Perpetual Futures](https://learn.tradelabsai.com/crypto/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](https://learn.tradelabsai.com/risk/position-sizing/).
- **Use volatility based stops.** See [ATR (Average True Range)](https://learn.tradelabsai.com/indicators/atr/).
- **Diversify carefully:** most altcoins are highly correlated with Bitcoin. See [Correlation Management](https://learn.tradelabsai.com/portfolio/correlation-management/).
- **Plan exits before entry.** See [Exit Mechanics](https://learn.tradelabsai.com/position-management/exit-mechanics/).

## Custody choices

| Option | Pros | Cons |
|---|---|---|
| Keep on exchange | Convenient for active trading | Exchange failure and hack risk |
| Software wallet | You hold keys; easy access | Phishing and malware risk |
| Hardware wallet | Strong security for long term holdings | Less convenient |

See [Blockchain Basics](https://learn.tradelabsai.com/crypto/blockchain-basics/) and [Centralized vs Decentralized Exchanges](https://learn.tradelabsai.com/crypto/cex-vs-dex/).

## 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](https://learn.tradelabsai.com/industry/record-keeping-for-traders/).

## Common mistakes

- **Using market orders in thin markets,** causing large slippage.
- **Chasing pumps** after large moves. See [FOMO](https://learn.tradelabsai.com/psychology/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](https://learn.tradelabsai.com/crypto/perpetual-futures/).

## Continue learning

- Next lesson: [Perpetual Futures](https://learn.tradelabsai.com/crypto/perpetual-futures/)
- Previous lesson: [Centralized vs Decentralized Exchanges](https://learn.tradelabsai.com/crypto/cex-vs-dex/)
- Related: [Centralized vs Decentralized Exchanges](https://learn.tradelabsai.com/crypto/cex-vs-dex/): Centralised exchanges hold your funds and match orders; decentralised exchanges trade from your wallet via smart contracts. Compare costs, safety and how each works.
- Related: [Crypto Trading](https://learn.tradelabsai.com/markets/crypto-trading/): How crypto trading works: exchanges, spot vs perpetual futures, wallets, 24/7 markets, fees, volatility and risk management, with a worked Bitcoin trade.
- Related: [Perpetual Futures](https://learn.tradelabsai.com/crypto/perpetual-futures/): Perpetual futures are crypto derivatives with no expiry, kept close to spot by funding payments. Learn how perps work, leverage, margin, funding and the main risks.
- Related: [Order Types Explained](https://learn.tradelabsai.com/orders/order-types-explained/): Market, limit, stop, stop-limit and trailing stop orders explained with examples. Learn what each order does, when to use it and the mistakes to avoid.
- Related: [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/): Position sizing decides how many shares or contracts to trade so each loss stays small. Learn the formula, worked examples for each market and common mistakes.