Basic concepts and terms in spot trading

It is best to start exploring the world of cryptocurrencies with spot trading. Spot trading is the easiest way to buy and sell cryptocurrencies. Here are the basic concepts you need to know to trade cryptocurrencies.

Trading Pairs

Digital assets on the spot market are traded in pairs, such as BTC/USDT, ETH/USDT or ADA/BTC. In the BTC/USDT pair: BTC is the base currency, and USDT is the quote currency. You can use USDT to buy BTC (a buy order in spot trading) or to sell BTC for USDT (a sell order in spot trading).

Charts

The ability to read charts is an essential skill for a crypto trader. A chart is a visual representation of price movements that gives an idea of market trends and possible price movements in the future. To learn about the basic principles of working with candlesticks, support and resistance zones, trend lines, moving averages (MA) and other tools, refer to our detailed guide on chart reading and technical analysis.

Types of orders

There are two types of orders in spot trading: a market order and a limit order. A market order is an order to buy or sell an asset at the current market price, while a limit order is an order to buy or sell an asset at a certain price.

With all this, of course, you need to have a trading account.

Thus, spot trading is a great way to start trading cryptocurrencies. Knowing the basic concepts and terms will help you navigate the market and make informed trading decisions.