This article comprehensively introduces the spot trading of crypto assets from eight aspects: definition, trading process, applicable scenarios, core terms, fee structure, security and risks, Gate operation guide, and precautions, helping you quickly understand.
1. What is spot trading of cryptocurrency?
Crypto Assets spot trading refers to users buying or selling digital assets at the real-time prices publicly announced on the exchange, and immediately delivering the assets into their wallets or account balances after the transaction is completed. The spot market includes buyers, sellers, and a public order book. Buyers place buy orders at the highest price they are willing to pay, and sellers place sell orders at the lowest price they are willing to accept. Upon matching, the ownership of the assets is immediately transferred.
2. Spot Trading Process
2.1 Order Placement and Matching
- Users select trading pairs (such as BTC/USDT), enter the quantity and price (market or limit).
- Market Order Spot trading: execute immediately at the current best price;
- Limit Order Placed on the order book, it will only be executed when the market price reaches the limit price.
2.2 Delivery and Clearing
- After the trade is matched, the assets and funds are transferred between the accounts of the buyer and seller immediately.
- Users can view the added crypto asset or stablecoin balance on the 'Assets' page.
2.3 Fund Management
- Spot does not require additional margin or leverage, invest and hold.
- Can be withdrawn to an external wallet or used for other trading at any time.
3. Applicable Scenarios and Advantages
3.1 Beginner's Guide
No need for leverage and complex contracts, the first transaction can be completed in minutes, intuitive and easy to understand.
3.2 Long-term Investment (HODL)
Buy and hold high-quality digital assets for long-term appreciation without the need for frequent trading.
3.3 Spot Arbitrage
Using the price difference between different exchanges or trading pairs for risk-free arbitrage.
3.4 Combination Hedging
Combined with contracts or leverage strategies, lock in profits or hedge risks, and improve capital efficiency.
4. Core Professional Terminology
| Terminology | Meaning |
|---|---|
| Market Order | Trade at the best market price immediately |
| Limit Order | Traded at the specified price or better |
| Order Book | Display a list of all outstanding buy and sell orders that have not been filled |
| Buy one/sell one | The highest buying price (buy one) and the lowest selling price (sell one) on the order book |
| Matching Engine | The core system of the exchange is responsible for matching buy and sell orders and executing trades |
| Trading Pair | The combination of two currencies for trading, such as BTC/USDT, ETH/USDT |
5. Fee Structure and Cost
Fee Rate Standard: [https://www.gate.com/fee]
- Maker Fee Provide liquidity to the order book with lower fees or rebates for limit orders;
- Taker Fee Market orders or trigger limit orders that are executed immediately incur higher fees.
- Private Key and Account Security Enable two-factor authentication (2FA), set fund password, and enable withdrawal whitelist.
- Risk Control Tool Use the risk warning feature to lock in profits or set stop-loss orders in a timely manner.
- Market risk Spot trading does not require leverage, but price fluctuations can still lead to unrealized losses, so position control and diversified investment should be considered.
6. Operation Guide for Spot Trading on Gate
Login to Gate, go to the top navigation 'Trade', click on 'Spot'
Place an order on the 'Buy Coin' or 'Sell Coin' page step by step;
On the Spot Trading page, select the direction of buying or selling, enter the order quantity, price, and other parameters, then confirm the order. After the order is successfully placed, you can check the transaction status at the bottom of the page and view the balance update in the 'Assets' - 'Spot Account'.
7. Precautions
- Place orders rationally To avoid chasing highs and killing lows, it is recommended to use limit orders to gradually build positions.
- Cost optimization Priority placing orders to enjoy maker fee discount; The basic fee rate for spot trading is 0.1%, the higher the level, the greater the fee discount. Using GT for deduction can stack discounts on the VIP rate.
- Market Assessment Focus on the depth and trading volume of the trading pairs, and choose mainstream coins with good liquidity.
8. Conclusion
Spot trading of crypto assets is the most basic and important way of trading. With the features of instant delivery and no leverage, it provides convenient access for all types of investors. With the help of Gate's powerful matching engine, low fees, and comprehensive help center tutorials, you can quickly master spot trading and lay out diversified asset allocations with ease.
