Basic Concepts and Essential Terms in Spot Trading

Starting with spot trading is a smart choice for those new to the cryptocurrency world. It is the simplest and most understandable form of trading – you place an order to buy or sell a digital asset, and the exchange will connect you with a suitable seller or buyer. Below are the key terms you need to understand.

Trading Orders: The Two Main Types You Must Know

In spot trading, there are two basic types of orders that every trader needs to understand:

Market Order – This is an order executed immediately at the current price. Want to buy or sell right now? A market order will help you complete the transaction within seconds without waiting.

Limit Order – This type of order allows you to set a specific price to buy or sell. If the price reaches your specified level, the trade will be automatically matched. This is a useful tool when you want to manage your position calmly.

Trading Pairs: The Basic Mechanism

Digital assets on the spot market are always traded in pairs. Typical examples include BTC/USDT, ETH/USDT, or ADA/BTC. Let’s take BTC/USDT as an example:

• BTC is the quote currency (the asset you want to buy or sell)
• USDT is the valuation currency (the unit you use for pricing or payment)

You can use USDT to buy BTC (called a buy order), or sell BTC to receive USDT (called a sell order).

Account System: What is Fund and Its Role

To start spot trading, you need to understand the account structure on trading platforms. There are three main types of accounts:

• Funding Account (Fund Account) – This is where assets are stored when you deposit money or purchase digital assets. What is Fund? Simply put, it’s your “wallet,” where you manage assets not yet used for trading.

• Trading Account – To truly begin spot trading, you must transfer assets from the funding account to the trading account. This is where your orders are executed.

• Growth Account – A specialized account for long-term investment products.

The process is very simple: deposit → assets into fund → transfer to trading account → start trading.

Price Charts: Essential Tools for Market Analysis

The ability to read charts is an important skill that any cryptocurrency trader must have. Charts are visual representations showing price fluctuations over time, providing detailed information about market trends and potential price movements.

To master technical analysis, you need to understand concepts such as candlesticks (candlesticks), support and resistance zones, trendlines (trendlines), as well as moving averages (Moving Average - MA). These tools will help you identify trading opportunities and manage risks more effectively.

Things to Remember

Spot trading opens a great door for beginners. Mastering concepts about trading pairs, order types, account systems (especially fund), and how to read charts will help you become more confident when entering the market and making smart trading decisions. Keep learning and practicing to develop your skills.