Key Points
Spot trading is one of the simplest traditional methods of buying and selling financial assets.
Binance spot trading platform has low fees, strong liquidity, and provides a user-friendly interface, suitable for all types of traders.
This guide covers the basics of spot trading, introduces the user interface of Binance Spot, and guides users to easily buy and sell cryptocurrencies at any time.
Introduction
When users first start trading and investing in cryptocurrencies, they generally start with spot trading, which is one of the easiest ways to buy and sell financial assets.
Binance spot trading platform provides a user-friendly interface, allowing both new and experienced traders to easily buy and sell assets while enjoying the platform's low fees and high liquidity.
This article will introduce the basics of spot trading, its unique advantages, and how it differs from other forms of trading. After that, we will demonstrate how to start spot trading on Binance.
What is spot trading?
Spot trading is an instant and direct form of trading, with transactions settled instantly and without any leverage. It is the most basic form of trading and can be used for various asset classes such as cryptocurrencies, stocks, commodities, foreign exchange, bonds, etc.
While spot trading can take place directly between traders, the trades themselves are usually facilitated by exchanges such as Binance.
What is the difference between the spot market and the contract market?
The spot market conducts immediate or short-term transactions for immediate delivery, while the contract market involves contracts with set delivery dates in the future. Spot transactions rely on the current market price determined by supply and demand. In contrast, futures contracts are based on the agreement between the buyer and the seller.
What is the difference between spot trading and leverage trading?
Spot trading requires full purchase of assets and immediate delivery, while leveraged trading allows borrowed funds to establish larger positions. Leveraged trading will amplify potential profits and losses, but the greater the risk, the higher the return.
Advantages of spot trading
Lower risk: The spot market only involves buy and sell orders, so there is no need to worry about forced liquidation or margin calls. This trading method is very suitable for users who want to buy and hold.
Simple and clear: Spot trading is simple and clear, everyone can participate, and it is very suitable for beginners.
Instant opening and closing of positions: Traders can enter or exit a trade at any time.
How to start spot trading on Binance?
The following example is an operation on the Binance spot interface. We first illustrate how to use USDT to buy BTC through a limit order, and then illustrate how to sell BTC in exchange for USDT through a market order.
How to access the Binance spot interface
1. Log in to your Binance account and click [Trade] → [Spot Trading].
2. You will be redirected to the Binance trading interface.
3. The order book is displayed on the left. Sell orders (Ask price) are red and buy orders (Bid price) are green.
4. The transaction chart in the middle is the interactive dynamic chart of the selected transaction pair. Here we take BTC/USDT as an example.
5. On the right is a list of trading pairs, which includes all trading pairs that can be traded on Binance. Use the "Search" function to find a specific trading pair.
6. Below the chart is the area to create buy and sell orders. Before placing buy and sell orders, please top up your spot wallet.
7. If you want to use USDT to buy BTC, you need to deposit USDT into your spot wallet first. Click the [+] icon to deposit your account and select your preferred method.
How to buy BTC with USDT
1. The first step is to select the order type. A limit order sets a specific price for the order (not necessarily the current price). A market order executes the order as quickly as possible at the current real-time price.
2. If you use a limit order, please set the price and quantity you want to buy, and click [Buy BTC] to create the order.
3. A notification of successful order creation will be displayed in the upper right corner of the screen.
Please note that traders can track their current orders at the bottom of the trading interface.
4. When BTC reaches the order price, the order will be executed.
How to sell BTC for USDT
The process of creating a sell order is similar. The following is an example of selling BTC for USDT. This example uses a market order.
1. Select the order type, set the quantity and click [Sell BTC].
2. After selecting the market order, the sell order will be immediately created and executed at the market price.
How to view order details
Traders can view historical orders, historical transactions and other details at the bottom of the trading page.
Click the "Edit" button next to "Price" and "Quantity" to edit the current order.
Click the trash can icon on the right to cancel a single order, or click [Cancel All Orders] to cancel all current orders.
Conclusion
Spot trading is simple and easy to use, making it a great place to start your cryptocurrency trading journey. With low fees, strong liquidity, and a user-friendly interface, Binance Spot is an ideal platform for both new and experienced traders.
Further reading
Disclaimer: This article is provided "as is" for general information and educational purposes only and does not constitute any representation or warranty. This article does not constitute financial, legal, or other professional advice and is not intended to be a recommendation to purchase any specific product or service. You should seek advice from appropriate professional advisors. If this article is contributed by a third party, please note that the opinions expressed herein are those of the third-party contributor and do not necessarily reflect the opinions of Binance Academy. For more information, please click here to read the full disclaimer. Cryptocurrency prices may fluctuate. The value of your investment may go down or up, and you may not get back the money you invest. You are solely responsible for your investment decisions and Binance Academy is not responsible for any losses you may incur. This article does not constitute financial, legal, or other professional advice. For more information, please refer to our Terms of Use and Risk Warning.