Spot trading is the simplest way to trade, where you buy an asset like cryptocurrency at its current market price (the "spot" price) and aim to sell it later at a higher price. Your profit is the difference between your buy price and sell price. For example, buying TROY at $0.10 and selling at $0.15 earns a $0.05 profit per token. Unlike leveraged trading, you fully own the asset and can hold it as long as needed, avoiding liquidation risks.
To maximize gains, traders use tools like support and resistance levels to find good entry and exit points, and indicators like the Relative Strength Index (RSI) to gauge market trends. Risk can be managed with stop-loss orders, which sell automatically if prices drop to a set level, and dollar-cost averaging (DCA) to reduce the impact of market volatility. Patience and strategic timing are key to success in spot trading.
