TRADING SPOT: A beginner’s guide on trading of cryptocurrencies
In the world of digital currencies, trading spot is a popular method to buy and sell cryptocurrencies with traditional financial institutions. Also known as the over-the-counter markets (OTC), the trading spot allows individuals to exchange cryptocurrencies at their current market prices without the need for centralized exchanges or brokers. In this article, we will immerse ourselves in the basics of punctual trading, its advantages and provide a step by step guide on how to start.
What is the spot trading?
Trading in cash implies the purchase and sale of cryptocurrencies at their current market price, as is traditional trading in shares or raw materials. Unlike margin trading, which allows merchants to borrow money from a scholarship to make greater transactions, cash trading requires the merchant to pay for the parts they buy in advance.
There are several types of punctual trading:
- Market-Massement : It is then that a dealer provides liquidity at the market by buying and selling cryptocurrencies at market prices in force.
- Overwhelming markets (OTC) : These are private markets where traders can buy and sell cryptocurrencies with each other, often without central exchange or broker.
- Future trading : This implies the exchange of a long-term contract for a specific cryptocurrency price, which buys and sells mainly at the same time.
Advantages of cash trading
Spot Trading offers several advantages to traders:
- Lower costs : Compared to traditional trading platforms, cash trading generally require lower costs, in particular for small trades.
- Flexibility : The trading spot allows merchants to buy and sell cryptocurrencies according to their own schedule, not counting on centralized scholarships or brokers.
- LEVER : Trading with a lever effect of 1: 100 can amplify gains, but also increases the risk of significant losses if it is not managed correctly.
How to start with the spot trading
The start of trading points requires knowledge and preparation:
- Choose a cryptocurrency
: Select a well-known cryptocurrency like Bitcoin (BTC) or Ethereum (ETH) which is active on the market.
- Understanding the costs and commissions : Look for the costs associated with different platforms, exchanges or brokers to determine whether they are competitive with punctual trading options.
- Open a trading account : Create an account with a renowned exchange or broker, such as Coinbase, Binance or Kraken.
- Deposit fund : Fund Your trading account by transferring the cryptocurrency of your portfolio or using the fiduciary currency.
- Choose a trading strategy : Decide a trading strategy, such as day trading, swing trading or position trading.
- Start with a demonstration account : Consider opening a demonstration account to practice trading to the point without risking real money.
Trading platforms of popular spots
Some trading platforms of popular spots include:
- Coinbase : A well-known cryptocurrency exchange which offers punctual trading with several cryptocurrencies.
- Binance : A large and active cryptocurrency exchange which offers punctual trading, margin trading and long-term trading.
- Kraken : A renowned exchange which offers punctual trading, margin trading and options trading for various cryptocurrencies.
- Bitmex : A popular exchange which offers punctual trading with margin trading and derivative trading.
Advice for the trade of successful spots
To succeed in punctual trading:
- Stay informed : Hold up to date with market news, trends and regulatory changes to make informed commercial decisions.
- Use the right risk management : Define the stop commands, the dimensioning of the position and the leverage to manage your exposure to the risks.
- Diversify : Distribute your professions on different cryptocurrencies to minimize exposure to market volatility.
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