If you are new to cryptocurrency and want to understand the difference between currency conversion and spot trading on Binance, here is a simple explanation:
1. Currency conversion #convert
What is it?
A conversion is a straightforward process where one cryptocurrency is exchanged for another instantly without getting into market details or trading fees.
How does it work?
On Binance, you can choose the currency you want to convert from and the currency you want to convert to. Once you enter the required amount, the conversion value will be displayed, and you click “Confirm” to complete the process.
When to use?
If you want to exchange currencies quickly and easily.
If you don't care about the current market price or making a profit.
Very suitable for beginners who do not know how to trade.
Features:
No need to understand the complexities of the market.
Easy and fast.
Disadvantages:
Prices are often less accurate than the spot market due to hidden fees in the spread.
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2. Spot Trading #SpotTrading.
What is it?
Spot trading is the process of buying or selling cryptocurrencies on a trading platform, where you set the buy or sell price yourself based on supply and demand in the market.
How does it work?
You need to enter the instant trading interface.
Select the currency you want to trade (eg BTC/USDT).
You can choose the type of order (Market, Limit, Stop-Limit).
When to use?
If you are interested in controlling buy or sell prices.
If you are looking to profit from market fluctuations.
Features:
Flexibility in pricing.
Transparency in dealing with the market.
Disadvantages:
It takes experience to understand the market.
It may take longer to execute trades if the price you set is far from the market.
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Main difference:
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Advice for beginners:
If you're new and just need to quickly exchange currencies, start with the conversion option.
If you want to learn more about the market and make profits, take the time to learn spot trading through the educational videos or guides provided by Binance.