Spot trading refers to the buying and selling of cryptocurrencies at the current market price for immediate settlement. In spot trading, users directly own the purchased asset, and the transaction is completed once the order is executed.
There are two main order types in spot trading:
Market Order
A market order is executed instantly at the current best available market price.
Example: If Bitcoin is trading at $60,000 and you place a market order to buy, your order will be executed immediately at the best available price.
Limit Order
A limit order allows you to set a specific price at which you want to buy or sell. The order will only be executed if the market reaches your specified price.
Example: If Bitcoin is currently at $60,000 and you place a limit order to buy at $58,000, your order will only execute if the market price drops to $58,000.